The Dow Jones Industrial Average plunged after a report that was stronger than expected. apple (AAPL) was the hardest hit blue chip. Tesla (TSLA) fell 9% after CEO Elon Musk announced a restructuring of the workforce. Amazon (AMZN) also fell after a central leader resigned.
A couple of stocks were still trying to make bullish moves in the middle of the painful action. New fortress energy (NFE) and Northrop Grumman (NCC) tested both buy points after forming bullish bases.
The volume was lower on both the Nasdaq and New York Stock Exchange compared to the same time Thursday, a touch of comfort.
Meanwhile, the return on the benchmark index for 10-year government bonds rose four basis points to 2.96%. West Texas Intermediate crude oil futures rose nearly 2% to just under $ 119 a barrel.
Shares were penalized after new data from the Department of Labor showed that the U.S. economy added 390,000 jobs in May. This exceeded the estimate of 325,000 from economists. Unemployment came in at 3.6 percent.
“The latest employment report showed slower job growth (compared to April) and potentially softer inflation, but still keeps the door open for the Fed to continue its rate hike campaign well into the summer,” Oanda senior market analyst Edward Moya said in a note to clients.
Nasdaq slammed as lowercase letters fought back
At 13:30 ET, the Nasdaq fell more than 2.4%, but moved slightly from the lowest level of the day. Micron technology (MU) was a big laggard as it fell around 7%.
The S&P 500 was down when it slid around 1.5% lower. American Airlines (AAL) deleted here as it fell around 7%.
The S&P sectors were mainly negative. Consumer discretion and technology were the areas hardest hit. Energy was the only positive since the oil continues to flow higher.
Small capital investors fought back against the hungry bears. Russell 2000 fell less than 1%.
Nevertheless, the growth stocks held up quite well in comparison. Innovator IBD 50 ETF (FFTY), a watch for growth stocks, was low as it slipped a fraction lower.
Dow Jones today: Apple stock reversed
The Dow Jones Industrial Average came out on top in the major indices, but still gave up around 279 points, or just under 1%.
Apple stock was the worst performer on the blue chip index as it plunged almost 4%. However, it was low for the day. The AAPL stock remains below the key moving averages and is now testing support on the 10-day line, according to MarketSmith.
Chip-gigant Intel (INTC) also declined badly as it fell more than 2%.
larva (CAT) shone brightest as it increased by more than 1%. The construction machinery manufacturer’s share aims to drive higher and move away from its 50-day moving average.
Tesla stock crushed as Elon Musk cuts jobs
The bottomless run of the Tesla share in 2022 became even worse on Friday when the share fell 9%. The move came in heavy volume.
The electric car share was hammered after CEO Elon Musk told employees via email that 10% of employees should be fired, Reuters reported.
“Tesla will reduce the number of employees by 10% as we have been overstaffed in many areas,” Musk said in a statement. “Note that this does not apply to anyone who actually builds cars, battery packs or installs solar energy.”
He also said that the company will increase the number of hourly paid employees.
It comes after Musk said he had a “super bad feeling” about the economy.
He has also previously said on Twitter that employees who are not willing to spend a minimum of 40 hours in the office per week can “pretend to work elsewhere”.
The Tesla stock crashed below its 21-day exponential moving average and is now testing support on the 10-day line. It is miles below the most important moving averages.
The Tesla stock is even further away from its current consolidation entry of 1,208.10, MarketSmith analysis shows.
Amazon stock falls when key leader ends
The Amazon share was hit after it announced that a key manager was to resign.
The company said in a file that Dave Clark, CEO of the company’s worldwide consumer business, is retiring from July 1. He has been in the e-commerce giant for 23 years.
Clark has been an important right-hand man for the firm’s CEO Andy Jassy. He was a key figure in the expansion of Amazon’s extensive logistics network. A replacement has not yet been appointed.
“The last few years have been among the most challenging and unpredictable we’ve encountered in the history of Amazon’s consumer business, and I’m especially grateful for Dave’s leadership during that time,” Jassy said in a blog post.
Clark said in a Tweet that it was time for him to “rebuild” after a fruitful period at Amazon. He also said he is confident his teams have been “set up for success” in his place.
Amazon stock fell around 2.5 percent. At 2,441 shares are trading 35% of its 52-week high of 3,773. AMZN looks set to end a six-session winning streak. AMZN is still shy of its main major moving averages, especially the 50-day average and the 200-day line.
Outside Dow Jones: 2 test entries for Leaderboard stocks
A couple of Leaderboard shares managed to give buy points in the middle of the challenging action.
The natural gas game New Fortress Energy is staging an eruption, even though it is now trading almost flat. This means that it is now below the buying zone after breaking past a consolidation pattern entry of 49.40.
Nevertheless, the exposure to the stock was raised on the Leaderboard list of top stocks. It is among the top 2% of the shares in terms of price development in the last 12 months.
NFE aims to become the No. 1 supplier of carbon-free power in the world by helping customers convert or build gas-fired plants
Defensive play Northrop Grumman is also just below the entrance after breaking out of a cup with handle-base. The ideal buying point is 477.36.
Big Money has been picking up the shares lately. In total, 49% of the shares today are owned by funds.
Follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analytics.
YOU MAY ALSO LIKE:
MarketSmith: Research, charts, data and coaching in one place
These are the 5 best stocks to buy and see now
This is the ultimate Warren Buffett stock, but should you buy it?
Software growth stocks to buy, see or sell
This is the ultimate Donald Trump stock: Is DWAC a buy?