The stock market steadied in afternoon trading Friday and was off the lows of the day. The major indexes initially rallied on the August jobs report but soon tempered their enthusiasm.
The Nasdaq reversed course and pulled back 0.2% in uneven stock market action. The Dow Jones Industrial Average trimmed earlier gains, and was up 0.1%. The S&P 500 was nearly unchanged. All three major indexes are above their 50-day moving averages after regaining those lines Tuesday.
The small-cap Russell 2000 outperformed and added 1.2%.
Volume rose on the NYSE and Nasdaq vs. the same time on Thursday.
The Nasdaq 100-tracking Invesco QQQ Trust ETF was off 0.3%. And the Innovator IBD 50 ETF held up to rise 1.1%.
The benchmark 10-year Treasury yield added 8 basis points to 4.17%.
Stock Market Action: Lululemon Stock In Buy Zone
Athletic apparel retailer Lululemon Athletica popped 4.9% in heavy volume after the company reported a beat on Q2 earnings and sales. It also raised its full-year 2024 EPS and sales guidance. The IBD 50 stock cleared a resistance level around 394, putting it in a buy zone.
Toll Brothers gained 2.7% and crossed the 83.72 buy point of a flat base. The relative strength line hit a 52-week high as shown by the blue dot on the MarketSmith charts. But volume was not impressive.
The homebuilder reported better-than-expected fiscal third-quarter earnings and revenue on Aug. 22. Quarterly profit grew a robust 59% on 8% sales growth. Analysts expect EPS to rise 11% in the fiscal year ending in October and a 2% drop the next fiscal year.
IBD 50 component Samsara popped over 11% in heavy volume and broke out of a double-bottom base with a 29.79 buy point. The move came after the cloud connectivity company reported a profit in its July-ended quarter when analysts were expecting a loss.
Samsara also gave current-quarter revenue guidance above analysts' estimates and raised its full-year sales guidance. Several analysts raised their price targets on the stock following the report. Shares hit a 52-week high.
Online education provider Stride powered up 4.7%. Shares broke out of a cup-with-handle base, topping a 43.17 buy point. The stock is in the 5% buy zone reaching to 45.33.
Nutanix gapped up over 12% in heavy volume after the company reported higher-than-expected July-quarter earnings and sales. It also gave fiscal Q1 and full-year revenue guidance above analysts' estimates.
Shares of the cloud computing stock gapped above the 33.73 buy point of a long base and remain in a buy zone.
Dell Stock Hits A High
Dell Technologies spiked over 21% in huge volume, after the computer and peripherals maker reported better-than-expected July-quarter profit and revenue late Thursday. The stock is at an all-time high.
MongoDB jumped 3.9% in heavy trading after the company reported higher-than-expected second quarter earnings and sales. It also raised current-quarter and full fiscal year profit and revenue guidance.
Shares of the data platform developer retook the 50-day line. The stock is forming a cup base within a much larger consolidation with a 439 buy point, according to MarketSmith pattern recognition.
Shares of Broadcom fell 5% after the chipmaker reported a beat on its fiscal third quarter profit and sales late Thursday. Shares are forming a flat base with a 923.18 buy point.
Dow Jones stock Walgreens Boots Alliance fell 6.8% on news that its CEO is stepping down after two years on the job. The stock is on pace for its lowest close since March 20, 2009, when it closed at $24.29.
The stock is the biggest loser in the Dow today.
Job Gains Exceed Estimates
The Labor Department's report showed nonfarm payrolls rose 187,000 vs. the 170,000 economists expected, and more than the revised 157,000 job gains in July.
Private payrolls grew by 179,000 vs. 147,000 consensus and higher than the revised 155,000 in July. The 3.8% unemployment rate was above the 3.5% projected. The participation rate inched up to 62.8% from 62.6% the previous month.
The Federal Reserve will take into account August's jobs and unemployment rate and the downward revisions in June and July when it makes its next policy decision. Higher interest rates appear to be doing their job as the job market shows signs of slowing.
The August Purchasing Managers' Manufacturing Index (PMI) came in at 47.9 vs. the 47.0 consensus estimate, but lower than July's 49.0. New orders fell while output declined, according to S&P Global.
The Institute for Supply Management (ISM) index showed improvement at 47.6 vs. the 46.8 expected, and higher than 46.4 in July. A number below 50 indicates contraction, while above 50 signifies expansion.
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