The Dow Jones Industrial Average traded near session highs and was up 1% at 1:30 p.m. ET, after erasing early losses Friday. September's jobs report blew past views. Indexes reversed higher, with the Nasdaq leading broad gains.
The S&P 500 rose 1.2% in the stock market today. The Nasdaq rose 1.5% in early afternoon trading. It had been down as much as 0.9% in the morning session. Both indexes were at session highs in afternoon trading.
Thursday was Day 7 of a rally attempt as the Nasdaq continues to stay above last week's lows.
Volume on the NYSE and Nasdaq was higher compared with the same time on Thursday.
The Russell 2000 rallied 1%. The Innovator IBD 50 ETF outperformed with a 2.6% gain.
The economy added 336,000 jobs in September vs. 227,000 in August. Wall Street had expected signs of a cooling labor market with 160,000 additions, according to Econoday. Hourly wages rose 0.2%, unchanged from August's increase of 0.2% and lower than views of a 0.3% increase. The labor participation rate was unchanged at 62.8%.
The surprisingly strong jobs report sent the yield on the benchmark 10-year Treasury note escalating to 4.82% earlier today. But the yield ratcheted down to 4.76% by midday and was up 6 basis points to 4.78% at the hour.
Arch Capital Group is breaking out of a cup with handle with a buy point of 82.18. The relative strength line is at a new high, but volume is weak.
Cinemark also has its relative strength line at a new high and has broken out at 18.25. Volume was heavy. CME Group is also in a buy zone after breaking out of a flat base with a buy point of 209.31. Its relative strength line is at a new high.
Dow Jones Stocks
Walmart lagged, falling nearly 3% in more than average volume. The retailer slid further below its 50-day moving average and came close to testing the 200-day line. Several tech leaders rose, lifting the Dow. Microsoft is retaking the 50-day line, up 2.3%.
Walt Disney rose over 2% after analysts at Bernstein initiated coverage with an outperform rating and a price target of 103.
Analysts initiated coverage on other media and TV stocks as well, including Netflix, Warner Bros. Discovery and Paramount Global. DIS stock remains below the 50-day line.
In health care, UnitedHealth rose nearly 2% and appears to be getting past a resistance level around 515. Shares are also above a trendline entry of 512.
Eli Lilly rebounded from the 50-day line. The IBD Stock Of The Day is a new addition to IBD Leaderboard.
Outside the Dow, Aehr Systems plunged over 12% and dropped deeper below its 50-day moving average after it released its August-ended quarter report late Thursday. Shares bounced off the 200-day line. The maker of test gear for silicon carbide chips maintained its earnings outlook.
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Tesla Stock Pares Losses
Outside the Dow Jones, shares of Tesla trimmed losses and were flat. The EV leader cut prices for its Model 3 and Model Y again. Tesla will report its third-quarter results on Oct. 18. The stock is holding the 50-day line as it forms a handle with a 278.98 entry.
Exxon Mobil plans to acquire Pioneer Natural Resources for $60 billion, the Wall Street Journal reported.
The deal would expand Exxon's shale footprint in the Permian Basin of Texas and New Mexico, and would be its largest acquisition since its merger with Mobil in 1999. XOM pared losses. Shares were carving a handle, but the handle is too deep now. PXD gapped up 10% and is back above the 50-day line.
Apparel stock Levi Strauss saw nearly flat revenue from the prior year in its August-ended quarter. Earnings declined to 28 cents per share from 40 cents a year ago. Shares fell over 2%.
Conagra reversed higher 0.4% after Jefferies analysts cut the price target to 28 from 30. Conagra reported earnings Thursday that showed flat sales.
Outside Dow Jones: Warren Buffett Sells More HPQ
Elsewhere, Warren Buffett's Berkshire Hathaway is reported to have sold more HP shares. The fund has reduced its stake in the computer hardware and peripherals stock to less than 10%. HPQ, which fell 1.4%, and BRKB shares are below their 50-day lines.
Confectionary maker Mondelez fell nearly 4% after sliding 5.3% on Thursday. The stock has wiped out a 14% gain from a 68.81 buy point, which is a sell signal. It has also triggered a 7%-price-drop sell signal.
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