Dow Jones Fades Into The Close After Jobs Data; Microsoft Nears All-Time High

The Dow Jones Industrial Average fell 0.6% Friday. Other major indexes saw smaller declines as indexes faded into the close.

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The S&P 500 and the Nasdaq also pared back from their highs of the day. The S&P 500 fell 0.3% at the close, while the Nasdaq saw a 0.1% loss.

Volume on the NYSE and on the Nasdaq was lower from Thursday’s levels, according to early data.

The small-cap Russell 2000 outperformed with a 1.2% gain, while the Innovator IBD 50 ETF (FFTY) ended 0.4% higher.

Crude oil rose to $73.06 a barrel. The yield on the benchmark 10-year Treasury note was unchanged at 4.05%.

Friday’s jobs report showed 209,000 new jobs in June, lower than views for 213,000. On the other hand, wage growth was strong, while the unemployment rate was in line with estimates of 3.6%. The odds of a 25-basis-point hike in the Fed’s July meeting went up to 94.9%, according to the CME FedWatch Tool. The consumer price index is on watch for Wednesday.

Dow Jones Stocks In Focus

Generative AI is a major tailwind for Dow component Microsoft (MSFT). The stock is hovering near its all-time high of 351.47. Shares are well extended from a rebound off the 10-week moving average in late April.

JPMorgan Chase (JPM) rose 0.8% after an analyst upgrade to outperform from peer perform from Wolfe Research ahead of its earnings next week. Shares are in a buy zone from a 143.37 buy point.

Caterpillar (CAT) also gained in the Dow Jones, nearing a buy point of 250.89, while health care stocks fell. The Health Care Select Sector SPDR (XLV) was off 1.2%.

Resilient Rally Faces Resistance; 10 Stocks Near Buy Points

Stocks Moving Today

Outside the Dow, apparel company Levi Strauss (LEVI) cut its full-year outlook. The stock gapped down 8%, breaking below a downward-trending 50-day line in strong volume, according to IBD MarketSmith chart analysis.

Tesla (TSLA) reversed lower. The EV company rose earlier after it announced new incentives in China. Tesla also launched a global referral incentive program for new customers that includes three months of its Full Self Driving feature. Earlier, the company said it had cut the price of Models 3 and Y in Japan.

Fisker (FSR) erased early losses and gained 4% after missing second-quarter production targets. Earnings are due Aug. 4.

Rivian (RIVN) gapped up more than 14% and continued its eight-day winning streak after Wedbush analysts raised its price target to 30, from 25, with an outperform rating.

Mercedes-Benz Group (MBGAF) rose 1.7%. The iconic luxury-car maker is the latest to join Tesla’s supercharger network. Its EVs will have Tesla’s North American Charging Standard Plug from 2025. Shares are approaching a buy point of 81.08 again after breaking out earlier.

Beacon Roofing (BECN) rose after preliminary second-quarter sales results of $2.5 billion. The stock is in a profit-taking zone from a 67.91 entry.

Also outside the Dow Jones, Meta Platforms (META) pared back all of the morning’s gains by the day’s end and closed 0.5% lower. Meta’s microblogging site Threads saw a surge in sign-ups since its launch on Wednesday. Meta is on the IBD Leaderboard.

Please follow VRamakrishnan on Twitter for more news on the stock market today.

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