The major stock market indexes relinquished morning gains in afternoon trading on Friday, dropping to lows for the day. Market players hit the exits on news that Russia will suspend natural gas pipeline shipments to Germany.
X
The Nasdaq changed course, now down 0.5%. The S&P 500 has shed 0.2% while the Dow Jones Industrial Average has dropped 0.2%. The Russell 2000 small-cap ETF (IWM) is trading lower by 0.2%.
The S&P 500 and small-cap Russell 2000 bumped up against their 50-day moving average resistance lines. The big-tech Nasdaq 100-tracking ETF Invesco QQQ Trust (QQQ) paced the downside, notching losses of 0.6%.
NYSE and Nasdaq volume fell double-digit percentages compared to the same time on Thursday, as investors prepare for an extended holiday weekend.
Crude oil has bounced less than 1% and is now trading just under $87 per barrel. Natural gas has sold off 4.8% despite the pipeline news, holding under the psychological $9 level. The SPDR Select Energy ETF (XLE) has surged 1.4%.
Bitcoin futures are rising, adding 1.1% to $19,910.
The German DAX has gained 3.3%, the FTSE 100 1.9% and the CAC 40 2.2% in late European action.
Yield on the 10-year U.S. Treasury note has slumped to 3.20%.
Markets now project a 58.0% chance the Fed will raise interest rates by 75 basis points in September. 42.0% are expecting a 50 basis-point boost.
More Folks Enter Workforce
Labor participation showed strength at 62.4%, up from 62.1%.
Average hourly earnings dipped slightly month-over-month to 0.3%, versus 0.4% expectations. The 5.2% hourly earnings year-over-year change undercut 5.3% consensus.
The unemployment rate rose to 3.7%, above 3.5% expectations, as more workers looked for jobs.
315,000 August non-farm payroll jobs beat 293,000 consensus, booking fewer jobs than July’s 528,000.
308,000 private payroll jobs blew away 280,000 expectations while manufacturing payrolls saw strength at 22,000 vs. 19,000.
Stock Market: Medical Play Breaks Out, Hits Buy Point
Medical diagnostics company Meridian Biosciences (VIVO) broke out of a cup-with-handle base, hitting the 33.27 buy point on the MarketSmith chart. The stock has pulled back 0.9% after morning gains.
Meridian boast a 97 Relative Strength Rating, telling investors it has performed better in the last twelve months than 97% of the stocks that IBD tracks. Shares are also trading above the 21-day exponential moving average.
Clean energy company AES Corporation (AES) broke out of a cup-with-handle base, hitting the 26.46 buy point, and is trading within the 5% buy zone. Share are up 0.9%, hitting a 52-week high.
The Relative Strength Line also hit a new high, as indicated by the blue dot on the chart.
Winners And Losers
Lululemon Athletica (LULU) has soared 6.8% after beating Q2 top and bottom line estimates after Thursday’s close. Management also offered better-than-expected Q3 and full-year 2022 sales guidance.
Broadcom (AVGO) is trading higher by 1.8% on an EPS and sales beat.
Offshore drilling company Valaris Limited (VAL) has risen 7.1% as the energy sector gains strength on higher oil prices, ahead of the upcoming OPEC+ meeting.
Stock Market Today: IBD 50 Stocks On The Move
The IBD 50 ETF (FFTY), a measure of growth stocks, has gained 0.8%, holding up better than major indexes.
Talos Energy (TALO), an oil and gas company, is higher by 5.9% as the energy sector leads the day. The company reported impressive quarterly growth on Aug. 4, with earnings showing acceleration. EPS rose from $0.45 per share in the December quarter to $0.77 in March, and $1.20 in June.
Talos holds a 98 Composite Rating and a 96 Relative Strength Rating.
CVR Energy (CVI) has gained 5.6% on light volume. The stock is in a cup-with-handle base with a 37.73 buy point. It has a perfect 99 Relative Strength Rating and a 94 Composite Rating.
Daqo New Energy (DQ) has pulled back 4.1% on light volume, testing the 50-day moving average. Daqo is an industry leader with a 99 Composite Rating and EPS rating.
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Read More:Stock Market Erases Morning Gains On Russian Pipeline Retaliation
2022-09-02 18:04:00