Major indexes continued a downward drift after the morning's steep fall. The Dow Jones Industrial Average is down over 450 points, or 1.5%, at noon ET Friday.
The morning's strong jobs data cast gloom as it increased the chances of tighter monetary policy. The S&P 500 is trading 2% lower. The Nasdaq continued to lead declines by falling over 3%. The small-cap Russell 2000 fell also declined further to trade 2% lower.
Volume is higher on the NYSE and Nasdaq compared with the same time on Thursday.
Major indexes have given up most of Monday's and Tuesday's gains.
Crude oil surged and crossed above the $90 a barrel mark. The yield on the 10-year Treasury note continued to climb, rising 3 basis points to 3.85%.
Tight Job Market Continues
Nonfarm payrolls increased in September by 263,000 after August saw a gain of 315,000 jobs. The unemployment rate fell to 3.5% in September.
According to Brad McMillan, chief investment officer at Commonwealth Financial Network, the labor market may be returning to a normal range seen in 2018-2019 and does not really indicate a decline. Labor participation rate was almost unchanged at 62.3% from August.
Earlier, signs of a softening labor market came in with September's JOLTS job openings, which fell from August by 6.2%, and initial jobless claims rose sharply Thursday by 29,000 to 219,000. Jeffrey Roach, Chief Economist at LPL Financial, observes that average hourly wages grew 5%, lower than inflation and will likely pressure consumer spending.
Oil Leaders In Focus Outside Dow Jones
In the IBD 50, oil plays Matador Resources, Pioneer Natural Resources and EOG Resources are leading the index as crude oil has spiked this week. EOG is in a cup base with a buy point of 148.09. Civitas is in a cup base with a buy point of 84.86.
Northern Oil & Gas is trying to reclaim a buy point of 33.60 after a sell signal. Devon Energy is in a cup-with-handle base near a buy point of 75.37. Diamondback Energy is in a cup base with a buy point of 162.34. Diamondback, Pioneer and Matador are IBD Sector Leaders. Dow Jones component stock Chevron has slipped slightly this morning.
Elsewhere, IBD 50 growth stock Vertex Pharmaceuticals is in a flat base with a buy point of 306.05.
Chip Stocks Moving Today
Taiwan Semiconductor beat views with a 48% increase in revenue to $19.4 billion in the third quarter. The stock fell, however, nearly 5% at midday. Meanwhile, Samsung warned of declining profit for the quarter.
Advanced Micro Devices sold off nearly 11% after it said it will have a whopping 40% decline in PC chips revenue this quarter due to slowing demand and inventory corrections. The Santa Clara, Calif., company's preliminary third-quarter revenue of $5.6 billion is 16% lower than its guidance of $6.7 billion. Revenue from data centers grew 45%, from gaming 14% and a whopping 1,549% from embedded systems, in line with its expectations.
Google Pulls Translate From Biggest Internet Market
Alphabet's Google has pulled out its translation service in China after the company reintroduced the service in 2017. The company pulled out due to low usage after a prolonged tussle in Chinese markets. Users are now redirected to a Hong Kong site, which is not available from mainland China.
Translate's free mobile and desktop app saw 53.5 million hits in China in August alone, according to some sources. Its active user base helped Google get a foot in the door to get users for Google's Play Store. Revenue from Play Store and other services grew 10% last quarter to $62.8 billion. Google Maps, Google Drive and Gmail have been unavailable in China since 2010. Google's browser Chrome will continue to be available, along with Pixel phones.
Alphabet shares fell more than 2%.
Dow Jones Stocks
Visa has partnered with crypto firm FTX to offer a crypto debit card in 40 countries. The Dow Jones leader has partnered with Coinbase, Binance and other firms as well. Visa shares fell more than 1% and remain in a deep correction.
