Dow Jones futures rose slightly early Friday after the March jobs report showed slowing employment and wage growth but also declining unemployment. while, Tesla (TSLA) cut US prices on all of its electric cars. US markets are closed today.
Major indices have held up well in the short trading week, with mid-week pullbacks looking healthy and normal. But many major sectors and stocks sold off heavily, including Tesla shares
Google’s parent the alphabet (Google) broke out on Thursday. Chinese e-commerce giant Ali Baba (Baba) flashing aggressive entry.
Google stock is in the IBD Long-Term Leaders, along with Microsoft (MSFT).
The video embedded in the article discussed weekly market movement and analyzed Google, BABA, and Intuitive surgery (ISRG).
The Labor Department reported that non-farm payrolls rose by 236,000, just below the estimate of 240,000. This is down from the revised 326,000 in February. Private salaries rose only 189,000. Well below offer for 223,000.
The unemployment rate unexpectedly fell to 3.5%, back to its lowest levels in the long term. However, the labor force participation rate rose to a post-Covid high of 62.6%.
Hourly earnings were up 0.3% compared to February, in parallel. The annual gain cooled to 4.2%, below views of 4.3% and the lowest in years.
Although gains in wages and private employment have slowed, the odds of a Fed rate hike in May rose to 65% on Thursday morning from 49% on Wednesday.
Dow jones futures today
Dow Jones futures rose 0.15% against fair value, reversing slight losses ahead of the jobs report. S&P 500 futures rose 0.2%. Nasdaq 100 futures have changed little.
The 10-year Treasury yield rose 7 basis points, to 3.35%.
Stock futures trading ceased at 9:15 a.m. ET.
US stock markets are closed in observance of Good Friday.
Hong Kong and European markets are closed on Good Friday and Easter Monday.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Stock market rise
The stock market rally had a mixed week. The Dow Jones Industrial Average rose 0.6% in weekly stock market trading. The S&P 500 fell 0.1%. The Nasdaq fell 1.1% and the Russell 2000 fell 2.5%.
US crude oil prices jumped 6.65% to $80.92 a barrel, mostly on Monday, after a surprise OPEC+ production cut. Crude oil futures are up 20.9% in three weeks.
The 10-year Treasury yield fell 22 basis points to 3.28%, hitting a seven-month low.
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Growth in ETFs
Among the ETFs, the Innovator IBD 50 ETF (fifty) sank 3.5% for the week. iShares Expanded Technology and Software ETF (IGV) fell 1.6%. Microsoft stock is one of IGV’s most important holdings. VanEck Vectors Semiconductor Corporation (SMH) gave up 4.1%.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(slip 4.4% and ARK Genomics ETF)ARKG) fell 1.2%, although both were higher on Thursday. Tesla stock is the number one stock ETF held by Ark Invest.
Tesla price cuts
Tesla slashed US prices on all of its electric vehicles overnight. It slashed the prices of the Model S and X for the third time this year, both by $5,000 in this case. The Model S starts at $84,990 while the Model X now starts at $94,990.
Meanwhile, Tesla cut prices for the American Model 3 by $1,000 to an entry price of $41,990. The Model Y has been reduced from $2,000 to $49,990.
Earlier in the week, Tesla cut the Model 3 and Y prices in Australia again.
Tesla cut global prices in January, with more US discounts on its S and X cars and additional European discounts in March. That, along with new US electric vehicle credits, pushed Tesla’s first-quarter deliveries to a new record. But they failed to meet the opinions of FactSet. Production again exceeded deliveries, with production of the Model S and Model X nearly twice as high as sales.
Many analysts expected further price cuts for Tesla to support demand, reducing its profit margins
Investors won’t get a chance to react to Tesla’s latest price cut until Monday. But Tesla stock fell 10.8% to 185.06 this week after the first-quarter delivery report. Shares fell below the 200.76 cup handle buy point and the 50-day moving average.
The base formed below the 200-day line, which is not significant. The buy point 200.76 is no longer valid, but TSLA stock is working on a new handle, which is already on the weekly chart, with an entry of 207.89. Of course, the 200-day line still looms just above that.
Tesla’s first-quarter earnings are scheduled for April 19, when investors will see how price cuts have affected margins so far.
Google stock jumped 3.8% Thursday to 108.42 in higher-than-usual trading volume. Shares rose above a cup handle buy point at 106.69 according to MarketSmith analysis.
The Google CEO said the company will add AI chat to its search engine shortly after Microsoft (MSFT) added ChatGPT to the Bing search engine and other products.
Alibaba shares rose 4.25% on Thursday to 102.74, breaking through the downward trend of the handle, making an early entry. The new handle is above the 50-day line but is too low in base to be considered adequate.
BABA stock rose in the previous week after Alibaba said it would split into six different units with their own executives and the option to file for IPOs.
Stock market rally analysis
The stock market rally witnessed a normal and healthy decline on the major indices during the week.
The Nasdaq fell, but regained the 12,000 level on Thursday. The S&P 500 is down while the Dow Jones is up.
Google stock was strong in the week and Meta platforms (meta) continued to rise. apple (AAPL) And Microsoft shares were little changed, on the edge of buy territory. while, Exxon Mobil (xom), merck (Mrk) And United Health (United nations) made big weekly gains.
But there were a lot of big losers. Construction groups and industry-related groups fell on Tuesday while growth stocks sold off on Wednesday. Many suffered severe damage, while others could return to their positions relatively soon. Thursday’s bounces, mostly from key levels, were certainly encouraging.
Defensive growth and names had a strong week, including pharma, consumables and utilities.
Will these areas continue to do well if the “risk on risk” mentality returns?
Read the big picture every day to stay in sync with market trend, leading stocks and sectors.
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