Dow futures: market rebound; Key metric in Friday’s jobs report

Dow futures were flat overnight, along with S&P 500 futures and Nasdaq futures, with the August jobs report out. The stock market sold off again during Thursday, but rebounded to close mixed.

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Despite getting close, there was more damage among major sectors and stocks amid a string of negative news.

US ban on sales of some advanced chips to China from nvidia (NVDA) And the AMD (AMD) criticized the semiconductor sector. Several massive sell-offs from struggling software makers have hit the field of other big tech. China’s shutdown of 21 million people due to Covid cases also affected stocks and led to sell-offs in crude oil, copper and base metals. Meanwhile, Treasury yields and the US dollar rose on the back of strong labor market data heading into the August jobs report.

More leading stocks – like Centennial collectibles (CELH) And the Energy Enphase (ENPH) – under pressure, although it has not yet cracked. Some stocks created in the past few weeks have broken through the main support, such as apple (AAPL), Arista Networks (Network) and to some extent, Tesla (TSLA).

Investors should have minimal exposure in the current market environment.

Jobs Report

Economists expect the August jobs report on Friday to show that nonfarm payrolls rose by 293,000 after July’s 528,000. Economists see unemployment steady at a half-century low of 3.5%.

Participation in the workforce will be key. A sustained recovery in the workforce would be a near-magical elixir for the economy, relieving pressure on the Federal Reserve to be too aggressive with raising interest rates.

But participation has trended downward in recent months, leaving no slack in the labor market.

The jobs report comes on the heels of data released this week showing initial jobless claims fell to a two-month low, and July jobs jumped well above expectations.

Why You Can’t Trust Friday’s Jobs Report

Dow jones futures contracts today

Dow futures were down 0.1% against fair value. S&P 500 futures fell 0.1% and Nasdaq 100 futures rose.

late on Thursday, from Broadcom (AVGO) And the Lululemon Athletica (lulu) posted strong earnings and high guidance. AVGO and Lululemon stock rebounded overnight. Both are not doable, but they are positive market action.

The jobs report will be released at 8:30 AM ET, which will surely spur big moves in Dow futures, Treasury yields, and more.

Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.

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stock market rise

The stock market rally started lower on Thursday and continued to weaken before rebounding late in the session to close mixed.

The Dow Jones Industrial Average rose 0.5% on Thursday stock market trading. The S&P 500 rose 0.3%. The Nasdaq Composite Index is down 0.3%. Small-scale Russell 2000 sank 1.1%.

US crude oil prices fell 3.3 percent to $86.61 a barrel.

The 10-year Treasury yield jumped 13 basis points to 3.265%, the highest since late June. The benchmark yield, which rose from just under 2.53% on August 2, began approaching an 11-year high of 3.48% on June 14.

ETFs

VanEck Vectors Semiconductor Corporation (SMH) waiver of 2.2%. Nvidia and AMD stocks are SMH’s major holdings. NVDA stock fell 7.7%, hitting a two-year low. AMD, less exposed to China restrictions than Nvidia, is down 3%, still above its June lows.

SPDR S&P Metals & Mining ETF (XME) decreased by 3.8%. american global aircraftPlanes) down 0.6%. SPDR Specific Energy Fund (SPDR ETF)XLE) lost 2.5%, and the Financial Select SPDR ETF (XLF) advance by 0.3%. SPDR Healthcare Sector Selection Fund (XLV) rose 1.6%.

Stocks reflect more speculative stories, the ARK Innovation ETF (see you) is down 0.4% and ARK Genomics (ARKG) rose by 0.65%. Tesla shares are principal ownership via Ark Invest’s ETFs.

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Market Rise Analysis

Well, it can be said that the stock market rally was due to the rebound. Thursday’s bounce from intraday lows to mixed will likely depend on Friday’s jobs report.

During the day, the main indicators took further damage.

The Nasdaq and S&P 500 did not hide their lows on July 26, which would have marked the end of the “upward bottoms” trend and may have caused a turn into the “market correcting”. But it is clearly below the 50 day moving averages, along with the Dow.

The small Russell 2000 and S&P MidCap 400 both broke their 50-day streaks Thursday.

It was encouraging to see the market battle again on Thursday afternoon in the face of several headwinds and headlines. But the market rise is measured in weeks, months or years, not in two-hour increments.

wide weakness

Steel stocks, which a week ago were hinting of buying, have melted down. Chip names that looked so strong crashed last week. Oil stocks are struggling.

Meanwhile, a bottom-hunting rally for the likes of Nvidia stock, datadog (DDOG) and ARKK ended weeks ago.

Solar, natural gas, and pollution control stocks are still holding up relatively well, although most of those names aren’t making progress and are starting to slip. Do Enphase stock, Cheniere Energy (liquefied natural gas) and the tremors of the centenary theater Thursday, or will they be the next to collapse?

Albemarle (ALB) Its recent gains faltered as lithium trades sold off.

Many of the stocks that are created may need major repair work even if the overall market rebounds quickly. Apple and Tesla shares closed higher after cutting 50-day streaks on the day. But both are looking at the 200 day streaks.

Vertex Pharmaceuticals (VRTX) shows positive action, while United Health (United nations) And the two cents (CNC) They are fighting for major support in the old buying areas.

Time to Market with IBD’s ETF Market Strategy

What are you doing now

This is not the time to buy stocks. If you have a few strong-earning stocks that are holding up well, you can hold on to them, although partial dividends aren’t a bad idea.

Investors can vary when to sell winning stocks, but you have to draw a line in the sand somewhere.

This is not the time to be short selling. The perfect time was when the market hit the resistance at the 200 day line a few weeks ago. Selling deals can be fierce, albeit short-lived. However, if the indices rise to the 50-day line and stop, there could be new selling opportunities, perhaps even in stocks like Arista, Apple or Tesla.

Work on your watch lists, long and short. Even if you don’t intend to sell, exercise can help your general analysis of the market and prevent you from being overly optimistic.

Read The Big Picture Every day to keep up with the trend of the market, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

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