The stock market sold off in the past hour as indexes went from gains of about 1% to minor losses in afternoon trading. The sudden drop may be related to a longer shutdown of a Russian gas pipeline that supplies Europe.
The Nasdaq composite was down 0.3% while the S&P 500 and Dow Jones Industrial Average reversed lower 0.1%.
But the small-cap Russell 2000 held up better, reducing its gain to 0.5% from more than 1% earlier today. The Innovator IBD 50 ETF still outperformed with a 1.6% jump, though it trimmed gains.
Volume on the NYSE and the Nasdaq was lower compared to the same time yesterday.
Bloomberg reported that Gazprom claims it detected an oil leak at Nord Stream 1, which will force the gas pipeline to remain closed until repairs are made. The company gave no timeline for a restart. U.S. NatGas Fund climbed as much as 4% from its session low at 2:45 a.m. ET. Indexes started rolling over shortly thereafter.
Employment Report Pleases Stock Market
A surprising rise in the unemployment rate tempered today's strong payroll numbers.
The search for the perfect switch that will reset the economy heated up after Friday's nonfarm payrolls showed the economy added 315,000 jobs in August. The unemployment rate rose to 3.7% while the average hourly wage increase of 0.3% slightly lagged expectations.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31970.71 | +314.29 | +0.99 |
| S&P 500 | (0S&P5) | 4009.39 | +42.54 | +1.07 |
| Nasdaq | (0NDQC ) | 11896.02 | +110.89 | +0.94 |
| Russell 2000 | 183.69 | +2.19 | +1.21 | |
| IBD 50 | 28.05 | +0.65 | +2.37 | |
Last Update: 12:14 PM ET 9/2/2022 |
||||
The yield on the benchmark 10-year Treasury note fell 6 basis points to 3.21%. Crude oil bounced back and traded at $89.10 a barrel.
According to Jeffrey Roach, Chief Economist for LPL Financial, the "uptick in unemployment along with a modest increase in the participation rate means that the labor market in August is less tight than it was in July."
Quincy Krosby, chief global strategist at LPL Financial, adds that a lower wage increase could lead to the price stability the Fed is looking for. The market is likely oversold, he adds, and today's report brings back the possibility of reaching price stability while leaving the labor market healthy.
The consumer price index report on Sept. 13 is on watch for further indications of cooling inflation, which would impact Fed policy.
Hollysys Automation Technologies gapped up 20% after a report that the automation and control company will go private. The deal values the company at $1.8 billion.
Warren Buffett sold an additional 1.72 million BYD shares. The Berkshire Hathaway chief sold a significant portion of holdings. Berkshire's stake in the Chinese EV giant is down to 18.87% from 19.02%.
BYD reported a strong quarter in August and had a robust delivery of over 170,000 EVs for the month. Shares are down about 4% this week.
Investors should watch highly rated IBD 50 stocks that have been trending off bases. In a sustained market rally, these stocks will pare back recent losses. Some of these may offer a lower buy point. Others could clear and even form support along key levels.
Cross Country Healthcare is in a cup-with-handle base, near a buy point of 22.87. Palo Alto Networks is nearing a buy point of 578.89 and has formed a handle in a cup base. The stock has been moving above its 50-day line. Commercial Metals, CVR Energy and Mosaic are rising from support at their 50 day lines.
In health care, Pfizer, Moderna and BioNTech got FDA approval late Thursday to roll out Covid bivalent booster shots that will work against omicron subvariants BA.4 and BA.5. Pfizer shares are paring back some of yesterday's 3% gain. Moderna and BioNTech are little changed.
Earnings Movers In Stock Market
Broadcom topped earnings and revenue estimates of $9.56 a share on revenue of $8.41 billion with earnings of $9.73 a share on revenue of $8.46 billion. Shares are surging over 3% toward the 50-day moving average.
Athletic apparel company Lululemon also beat views with earnings of $2.20 per share, on revenue of $1.87 billion. Expectations were $1.86 a share on $1.77 billion in revenue. The company expects earnings of $1.90-$1.95 a share for the current quarter. LULU shares gapped up 10% and are approaching resistance along the 200-day moving average.
