The Dow Jones Industrial Average dropped 250 points Friday after the Labor Department's strong September jobs report. Meanwhile, Tesla stock skidded after cutting U.S. prices of its Model 3 sedan and the Model Y SUV.
The jobs report showed that nonfarm payrolls jumped 336,000 in September, far above Wall Street's estimates for the addition of 150,000 new positions. The jobless rate ticked up to 3.8% from 3.7%, in line with estimates.
Tesla skidded 3% after the EV giant lowered the price on its Model 3 rear-wheel drive to $38,990 from $40,240, according to its website. Prices of the Model 3 long-range and performance cars were reduced to $45,990 and $50,990, respectively. Tesla also cut Model Y variants.
Exxon Mobil reportedly is close to a $60 billion deal to buy Pioneer Natural Resources. Exxon shares declined nearly 3%, while PXD stock leapt more than 9%.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday's opening bell, the Dow Jones Industrial Average dropped 0.7%, while the S&P 500 lost 0.85%. The tech-heavy Nasdaq composite declined 0.8% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust tumbled 0.7%, while the SPDR S&P 500 ETF lost 0.65% early Friday.
Early action also showed the 10-year U.S. Treasury yield jumping to 4.84%, bouncing back from two days of losses, after the jobs report.
Oil prices rose nearly 1% in early trade after two straight days of sharp losses. West Texas Intermediate futures traded around $83 a barrel.
Stock Market Correction
On Thursday, indexes closed well off session lows. The Dow Jones Industrial Average edged lower, while the S&P 500 dropped 0.1%. The tech-heavy Nasdaq composite also slipped 0.1%, and the small-cap Russell 2000 rose 0.1%.
Thursday's Big Picture column commented, "A stock market rally attempt remains intact on the Nasdaq since the tech-heavy index has yet to undercut its lows set on Sept. 27. Thursday was Day 7 of a rally attempt, so investors should be preparing for a follow-through day. The S&P 500 already undercut its September low, so it's barely getting started with a rally attempt of its own."
Now is an important time to read IBD's The Big Picture column, with the stock market outlook in a correction. Be sure to read how to handle the stock market weakness and prepare for a new uptrend.
Learn How To Time The Market With IBD's ETF Market Strategy
Stock Market Today
Nvidia dropped 1% Friday morning, while Dow Jones tech icons Apple and Microsoft traded squarely lower after today's stock market open.
IBD Leaderboard member Arista Networks, Duolingo, DraftKings, and Zscaler — as well as Dow Jones stocks Caterpillar and Chevron — are among the companies to watch in the ongoing stock market correction.
Tesla is a new IBD SwingTrader stock, while Arista is featured in this Stocks Near A Buy Zone column.
Dow Jones Stocks: Caterpillar, Chevron
Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point after strong gains since early June, per IBD MarketSmith chart analysis. CAT stock slipped 1.6% Thursday, further below the 50-day line. Shares rose 0.5% early Friday.
Dow Jones oil giant Chevron reversed 0.5% higher Thursday. Last week, CVX stock broke out past a short handle entry at 168.96. Meanwhile, a cup base within a larger consolidation continues to show a 172.88 buy point. Shares are battling for support around their 50-day line. Chevron shares inched up Friday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Duolingo Nears Buy Point
Arista climbed 1.1% Thursday, finding solid support around the 50-day line. A bullish rebound from that level places the stock in a new buy area, but the market outlook still shows a correction. So, investors should stay in cash. ANET stock edged lower early Friday.
DraftKings is building a consolidation that has a 34.49 buy point, per IBD MarketSmith pattern recognition. An early entry looms at 32.65. Shares are below their 50-day moving average, and the stock needs to move above that level. DKNG was down 1.2% in morning trades.
IPO Leader Duolingo climbed another 0.45% Thursday, yet remains below its latest buy point at 167.35. The new entry is the result of a handle forming on a double-bottom base. Still, shares are above a 162.20 buy point. DUOL stock was down 1.5% early Friday.
Recent IBD Stock Of The Day Zscaler slipped 1.2% Thursday, as tries to hold above its 50-day line. ZS stock fell 1.3% early.
Best Stocks In Today's 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 |
|---|---|---|---|
| Uber Technologies | 49.49 | Flat base | |
| Caterpillar | 293.88 | Flat base | |
| Duolingo | 167.53 | Double bottom with handle | |
| DraftKings | 32.65 | Cup with handle |
Source: IBD Data As Of Oct. 3, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock Hits Buy Point
Tesla stock paused Thursday, falling 0.45%. Shares remain above their 50-day line and near an alternative buy area. The buy zone starts at 254.77 and goes up to 258.40 for aggressive investors. TSLA stock has an official cup-with-handle base with a buy point at 278.98, and shares are about 7% away from that entry.
Shares skidded 3% early Friday, threatening to add to Thursday's losses after the price cuts.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple moved up 0.7% Thursday, rallying for a second session. Shares are trying to bounce back from their recent lows. Amid the continued weakness, the stock is sharply below its 50-day line after September's losses. If AAPL stock can rebound, it would likely have a double-bottom base with a 189.98 buy point. Shares lost 0.1% early Friday.
Microsoft shares inched higher Thursday, as they face a test of the 50-day line, which looms as a potential resistance level. And on Friday morning, MSFT stock declined 0.3%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
