The S&P 500 and Nasdaq composite suffered more debilitating losses Friday after July's jobs report surprised investors and raised fears of a recession.
Indexes closed off session lows but still battered. The Nasdaq dropped 2.4%, falling further below its 50-day moving average. The S&P 500 tumbled 1.8%. The benchmark index undercut its 50-day line after closing right at it Thursday.
The Dow Jones Industrial Average lost 1.5%. The blue-chip index dropped below its 21-day exponential moving average but held above its 50-day line. The small-cap Russell 2000 was crushed 3.5% and is at the lowest point since July 11.
Volume was lower on the Nasdaq and higher on the New York Stock Exchange, according to early data. Declining stocks topped advancers by 9-to-2 on the Nasdaq and by more than 3-to-1 on the NYSE.
In the bond market, the 10-year Treasury yield — which fell under 4% Thursday — shed 18 basis points to 3.79% Friday. The benchmark rate dipped to the year's low and saw its largest weekly decline since the first week of March 2020.
U.S. crude oil prices dropped to near $73.30 a barrel.
Stock Market Today: More Earnings Sell-Offs
Booking Holdings ceded 8.9% despite better-than-expected second-quarter adjusted earnings and sales. But the company's gross travel bookings came in light of expectations.
The stock fell further below its 50-day line in heavy volume and gapped below its 200-day line. It also gave back gains from a cup-base breakout at 3,918 and is about 14% below the entry. Shares triggered the 7% sell rule after breaking below the 50-day line last week. The stock has lost around 5% so far this year.
Atlassian cratered nearly 18% in heavy volume after the collaboration software maker topped fiscal fourth-quarter adjusted profit forecasts and slightly beat sales views. But it gave fiscal first quarter revenue guidance that disappointed.
In addition, it announced Chief Sales Officer Kevin Egan will leave the company. He will stay until the end of August. The stock knifed through its 50-day line, although it has been in a long downtrend since February.
1:30 p.m ET
Two Bright Spots On Dark Day
Ryan Specialty Holdings and GoDaddy bucked the selling with large increases following earnings reports.
IBD Big Cap 20 stock Ryan Specialty jumped 7.5% and reached a record high. The specialty insurance provider topped second-quarter adjusted earnings and revenue estimates. Shares have reached a 20% profit goal from a 61.29 buy point. Its relative strength line also made new highs as shown by the blue dot on the MarketSurge weekly chart.
In similar action, GoDaddy jumped 6.1% to an all-time high. The company exceeded second-quarter sales estimates but came up short on adjusted earnings.
But the web hosting and building tools provider raised its full-year 2024 revenue guidance. The stock has had a tremendous run since October without forming any bases as it rode its 10-week moving average higher. Shares have gained 41% so far this year.
12:03 p.m. ET
Stock Market Today: These Stocks Flash Sell Signals
IBD 50 stock Twist Bioscience plummeted more than 13% in heavy trading. The move came despite the company's smaller-than-expected fiscal-third quarter adjusted loss and higher revenue than views.
But Twist's loss increased from the prior year's same quarter. It also provided fiscal fourth-quarter and fiscal 2024 sales number above estimates, though that didn't help the stock. The drop below the 50-day line triggered a sell signal.
Prudential Financial tanked nearly 10% in heavy volume and also flashed a sell signal after plunging though its 50-day line. Shares stopped short of the 200-day line, finding support on the stock market today. The harsh drop followed the insurance company's miss on second-quarter adjusted earnings and sales estimates. Prudential stock was a big loser on the S&P 500 Friday.
DoorDash Surges On Earnings
DoorDash surged more than 8% in heavy volume. The food delivery company beat estimates on second-quarter revenue but recorded a larger-than-expected loss. Its loss shrank from the prior year's second-quarter loss. In addition, the loss was due to one-time litigation and office lease expenses, which DoorDash doesn't anticipate recurring.
The company's prediction on order value for the third quarter beat views, plus DoorDash said it plans to invest in expansion. Several analysts' raised their price targets on the stock including JPMorgan, UBS, Truist and Oppenheimer.
10:50 a.m. ET
Jobs Numbers Show A Big Miss
The Labor Department's July nonfarm payrolls rose by 114,000, much lower than the 180,000 expected and down from June's revised 179,000. Private payrolls also underperformed considerably, with 97,000 jobs added vs. the 155,000 forecast. It also lagged June's job growth of 136,000.
The unemployment rate also surprised the markets by jumping to 4.3% vs. the 4.1% expected, potentially sparking recession fears among investors.
Stock Market Today: Dow Stocks Amazon, Apple Show Mixed Results
Magnificent Seven stocks including Apple, Amazon.com and Nvidia were big movers on the stock market today.
Amazon.com stock plummeted nearly 12% in heavy volume after the company reported better-than-expected second-quarter profit but missed sales estimates. It also gave a third-quarter revenue outlook that was short of views. The stock is below the bottom of its most recent flat base.
Amazon stock sank further below its 50-day line and violated its 200-day moving average Friday. The big drop in heavy volume below the 50-day line triggered a sell signal. The stock is on track for its largest decrease since April 29, 2022, when it fell 14.05%, according to Dow Jones Market Data.
Apple stock improved from early losses and popped more than 2% after the iPhone maker beat expectations on its fiscal third-quarter earnings and sales. Its iPad tablet sales jumped 24% to $7.2 billion, helped by the release of new models.
Apple stock is extended from a cup base with a 199.62 buy point. It reclaimed its 21-day line after closing below it Thursday.
Nvidia stock gave back another 5% on top of Thursday's 6.7% drop amid broad selling on the stock market today. The IBD Leaderboard stock remains below its 50-day line.
Recession Fears Grip Market; Here's What To Do Now
Intel Weighs Down The Dow
Intel plunged around 27% in huge volume after the company missed second-quarter profit and revenue projections. It also now predicts a third-quarter loss on sales that are lower than analyst forecasts.
Intel announced it is cutting about 15,000 workers and will suspend its dividend as part of its cost-cutting measures. Shares fell further below their 50-day line. The stock has lost around 58% so far this year.
Snap plummeted more than 25% after the social media company missed second-quarter sales estimates and met adjusted earnings expectations. The stock fell further beneath its 200-day line on the stock market today. Shares have lost around 40% so far this year.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
