Dow Jones Rallies As U.S. Economy Adds 943,000 Jobs; Tesla Stock At New Buy Point

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The Dow Jones Industrial Average briefly rallied 150 points Friday, as the U.S. economy added 943,000 jobs in July. Tesla stock slid in midday trade, but remains above an aggressive entry, while HOOD stock surged as much as 19% in morning trade before cutting gains.




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Among Dow Jones leaders, Apple (AAPL) lost 0.6% Friday, while Microsoft (MSFT) moved down 0.4% in today’s stock market. Home Depot (HD) is trying to clear a new buy point.

Tesla (TSLA) looked to snap a seven-day win streak, losing over almost 2% Friday midday. Robinhood (HOOD) rebounded from Thursday’s plunge, surging as much as 19% in morning trade.

Among the top stocks to buy and watch, MercadoLibre (MELI), Square (SQ) and Twitter (TWTR) are in or near buy zones.

MercadoLibre, Microsoft and Tesla are IBD Leaderboard stocks. Square is an IBD SwingTrader stock and was Monday’s IBD Stock Of The Day.

Dow Jones Today: Jobs Report

The Dow Jones Industrial Average rose 0.45% Friday, while the S&P 500 traded up 0.2%. The tech-heavy Nasdaq composite lost 0.45% in midday trade.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35187.37 +123.12 +0.35
S&P 500 (0S&P5) 4434.68 +5.58 +0.13
Nasdaq (0NDQC ) 14840.49 -54.63 -0.37
Russell 2000 (IWM) 222.38 +0.35 +0.16
IBD 50 (FFTY) 46.17 -0.44 -0.94
Last Update: 10:46 AM ET 8/6/2021

Early Friday, the Labor Department said the U.S. economy added 943,000 jobs and the jobless rate fell to 5.4% in July, signs of the labor market strengthening ahead of the Delta variant threat. The surveys for the jobs report don’t fully reflect the potential impact of the Delta variant, as they were conducted in the middle of the month.

Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 1.1% Friday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved 0.4% lower. Meanwhile, the SPDR S&P 500 ETF (SPY) rose 0.2%.

Stock Market Rally

The S&P 500 hit more record highs Friday morning, while the Nasdaq eased from Thursday’s record. The Dow Jones industrials notched all-time highs in morning trade Friday.

Thursday’s Big Picture column commented, “Summer often makes for a sluggish stock market. And despite a pileup of distribution days in the S&P 500, the market is trying to break out of a two-week horizontal pattern. At least in the short term, investors can use certain indicators to judge their exposure to the stock market. One is the 21-day exponential moving average. As long as the Nasdaq, S&P 500 and Dow can hold above that line, consider it a positive.”

For more stock market commentary, check out IBD’s The Big Picture.


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Dow Jones Stocks To Buy And Watch: Home Depot

Dow Jones leader Home Depot is trying to break out past a cup with handle’s 333.55 buy point, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 350.23.

Shares dropped 0.5% Friday midday.

Stocks To Buy And Watch: MercadoLibre, Square, Twitter

IBD Leaderboard stock MercadoLibre is trading just above a 1,755.05 buy point following Thursday’s nearly 14% surge. Shares dipped 0.5% Friday. Per Leaderboard analysis, the stock’s first 5 minutes of trading notched a high of 1,755.05, and MELI is trading at a reasonable level above that price. A trend line within the base may also offer another early entry point.

The stock is also building the right side of a cup base, according to IBD MarketSmith chart analysis. Another possible entry looms at 2020.10. And be on the lookout for a potential handle to offer a more risk-optimal buy point.

IBD SwingTrader stock and Monday’s IBD Stock Of The Day, Square, is back in buy range past a 267.87 buy point in a cup-with-handle base amid Friday’s 1.4% loss. The 5% buy zone goes up to 281.26.

According to the IBD Stock Checkup, SQ stock shows a 97 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.

Social media giant Twitter is approaching a double-bottom-with-handle’s 73.44 buy point. Shares are about 5% away from the entry following Friday’s nearly 2% loss.

Robinhood Stock

Robinhood stock looked to rebound from Thursday’s 27% tumble, rallying as much as 19% Friday morning. Shares cut gains to 4.5% midday. HOOD stock plunged Thursday after the company said it would sell about 97 million shares on behalf of existing investors.

Keep in mind that new issues are particularly volatile. Investors should wait for an IPO base to form, offering the stock’s first buy point. HOOD stock does not have a proper buy point right now.

Tesla Stock

Tesla stock reversed nearly 2% lower Friday, looking to snap a seven-day win streak. The electric-vehicle giant is rebounding from support around its 50- and 200-day moving averages. Another strong show of support at these levels was bullish for the stock’s prospects.

Shares are trying to hold above a 700.10 aggressive buy point deep inside a correction. Meanwhile, a deep, large base continues to take shape.

On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple dropped 0.6% Friday. The stock hit an all-time high on July 15 at 150. Apple stock remains out of the 5% buy zone from a 137.17 entry in a cup base. On a weekly chart, IBD MarketSmith chart analysis also places a buy point at 145.19, which would put Apple in a buy range through 152.45.

Software giant Microsoft fell 0.4% early Friday, looking to give back a part of Thursday’s 1.05% gain. Microsoft continues to trade solidly above a cup base’s 263.29 buy point. The stock is extended above the 5% buy zone, which goes up to 276.45.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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