Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Business
SCOTT LEHTONEN

Dow Jones Rallies 250 Points On Unemployment Rate Jump; Tesla Stock Skids After New Model 3 Release

The Dow Jones Industrial Average briefly rallied 250 points Friday after the Labor Department's pivotal August jobs report. That came as Tesla stock dropped from the company's release of an updated Model 3 sedan in China and price cuts on its premium vehicles.

The Labor Department's August jobs report showed that nonfarm payrolls grew by 187,000 last month, topping the 170,000 estimate, and were unchanged from July's 187,000 increase. The unemployment rate rose to 3.8%, but was expected to remain unchanged at 3.5%.

Meanwhile, the July payrolls were revised down to 157,000 from 187,000.

Friday morning, Broadcom, Dell, Lululemon Athletica  and MongoDB were key earnings movers.

Broadcom shares tumbled nearly 3% in early trade, while Dell stock surged 15%. LULU stock rallied more than 2% in morning action, as MongoDB shares jumped almost 4%.

Stock Market Today

Electric-vehicle giant Tesla traded down 2% Friday, while Nvidia fell 0.8%. Dow Jones tech icons Apple and Microsoft were modestly higher after today's stock market open.

Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock fell 01%, while Meta shares gained 0.8% in early action.

Baker Hughes, Cadence Design Systems, Shopify, Synopsys and Tidewater — as well as Dow Jones stocks IBM, Merck and Visa — are among the best stocks to watch in the ongoing stock market rebound.

Baker Hughes is an IBD Leaderboard watchlist stock. Merck is featured in this Stocks Near A Buy Zone column.

IBD's latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox

Dow Jones Today: Oil Prices, Treasury Yields

After Friday's opening bell, the Dow Jones Industrial Average rose 0.6%, while the S&P 500 gained 0.55%. The tech-heavy Nasdaq composite rose 0.4% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 0.3%, while the SPDR S&P 500 ETF traded up 0.6% early Friday.

Early action also showed the 10-year U.S. Treasury yield ticked higher to 4.15% after Friday's jobs report.

West Texas Intermediate oil prices broke above early August highs to their strongest level in nine months. WTI futures traded up around 1% Friday morning, moving above $84.50 a barrel and sitting on a six-week advance.

Stock Market Trend

On Thursday, the Dow Jones Industrial Average dropped 0.5%, while the S&P 500 moved down nearly 0.2%. The tech-heavy Nasdaq composite rose just 0.1%. Volume also rose on the Nasdaq, which gave the composite a stalling day, a form of distribution.

Thursday's Big Picture column commented, "With this week's bullish action, IBD's market outlook was upgraded to a confirmed uptrend. IBD's recommended exposure range was upped to 20%-40%. Investors should be putting their watch lists to work. But raise exposure methodically, especially with the risk that economic data could rattle investors."

Now is an important time to read IBD's The Big Picture column as the stock market tries to extend its recent gains after a sharp pullback from this year's highs.

Five Best Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks: IBM, Merck, Visa

Dow Jones leader IBM is trying to break out past a cup-with-handle's 146.50 buy point. IBM stock rose 0.5% Friday, after a slight fall Thursday.

Drug giant Merck fought to stay above its 50-day line with a 1.1% fall on Thursday. MRK stock is tracing a flat base with a 119.65 buy point and a 115.61 early entry. Shares were up 0.6% early Friday.

And Dow Jones payments leader Visa is breaking out past its latest entry, a flat base's 245.37 buy point, according to IBD MarketSmith pattern recognition. V stock gained 0.7% Friday.

4 Top Growth Stocks To Buy And Watch In The Stock Market Rally

Stocks To Watch: Baker, Cadence, Shopify, Synopsys, Tidewater

Oil field services and equipment leader Baker Hughes has been trading tightly the past five weeks and has a buy point at its 2023 high of 36.48, according to IBD MarketSmith. BKR stock moved up 1.6% in early morning trade, as oil prices continue to rise.

Cadence Design Systems is in a flat base with a 248.16 buy point. Shares moved above an early entry at 237.91 this week and are about 3% away from their next entry. CDNS was up 0.6% Friday.

Shopify will make use of Amazon's vast distribution network, sparking a surge of nearly 11% in SHOP stock Thursday. Shares jumped above their 50-day line in big volume. A 71.43 buy point in a cup base is about 7% away. The stock has broken out past a downward trendline drawn from its July top. SHOP stock moved up 0.8% Friday morning.

Tuesday's IBD 50 Stocks To Watch pick, Synopsys, is trading in a flat base with a 468.03 entry. Meanwhile, an extra entry at 456.82 is also in play. SNPS stock edged higher Friday.

IBD Leaderboard stock Tidewater continues to rebound from support around its 10-week line, placing the energy leader in a new buy area. TDW stock added 2.6% early Friday.

Learn How To Time The Market With IBD's ETF Market Strategy

Best Stocks In Stock Market Action

These are four best stocks to buy and watch in today's stock market, including a Dow Jones leader.

Company Name Symbol Correct Buy Point Type Of Buy Point
Oracle 127.54 Flat base
Visa 235.57 Flat base
SLB 58.70 Cup with handle
Synopsys 468.03 Flat base
Source: IBD Data As Of Aug. 30, 2023

Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live

Tesla Stock

Tesla stock climbed 0.5% Thursday, on pace to finish with a weekly gain of more than 8%. Amid their recent rebound, shares are back above their 50-day line. Investors could use Thursday's high of 261.18 as an early entry. And TSLA stock has a 299.29 official buy point.

Early Friday, Tesla stock traded down 2% in morning trade after the company unveiled the new Model 3 sedan in China. The exterior got a modest, sportier look with the interior also having a relatively modest refresh. The new Model 3 is getting a 9% battery range boost and faster acceleration. In a surprise, though, the price will be 12% higher.

Meanwhile, the EV giant cut its prices on the Model S sedan and Model X sport utility vehicle in the U.S. and China, and lowered the price of the driver-assistance system marketed as Full Self-Driving by $3,000, to $12,000.

Tesla is now charging $74,990 for the base Model S and $79,990 for the Model X, according to its U.S. website. The two vehicles began the year with starting prices of $104,990 and $120,990, respectively.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock rose 0.1% Thursday, extending a win streak to five sessions. Shares regained their key 50-day line this week in bullish fashion. AAPL stock is building a flat base with a 198.23 buy point. AAPL stock rose 0.6% early Friday.

Microsoft shares also are rebounding from their recent lows, but the stock is seeing some resistance around its 50-day line. A decisive retake of that level would be a big positive for the stock's immediate prospects. And on Friday morning, the stock moved up 0.9%.

Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.