Stocks continued their sell-off Friday morning as July jobs numbers rattled investors with fears of a recession. Among the big losers was Amazon.com (AMZN), which crashed on earnings, while Apple (AAPL) managed a gain from its results on the stock market today.
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Palantir Heads Into Earnings As Tech Stocks Remain Under Pressure
The Dow Jones Industrial Average, S&P 500 and Nasdaq all posted significant losses. The Nasdaq composite took the worst of it, dropping 3%. The tech-heavy index fell further below its 50-day moving average.
Meanwhile, the S&P 500 tumbled 2.3%. The benchmark index undercut its 50-day line after closing right at that threshold Thursday.
And the Dow lost 2%, plunging nearly 800 points in recent trading. The blue chip index dropped below its 21-day exponential moving average on the stock market today. Further, the small-cap Russell 2000 was crushed and retreated 4%.
Volume was higher on both the Nasdaq and New York Stock Exchange vs. the same time Thursday.
In the bond market, the 10-year Treasury yield dipped to under 4% Thursday and shed 15 basis points to 3.82% Friday. The rate dipped to the year’s low. And U.S. crude oil prices dropped to near $73.60 a barrel.
Jobs Numbers Show A Big Miss
The Labor Department’s July nonfarm payrolls rose by 114,000, much lower than the 180,000 expected and down from June’s revised 179,000. Private payrolls also underperformed considerably, with 97,000 jobs added vs. the 155,000 forecast. It also lagged June’s job growth of 136,000.
The unemployment rate also surprised the markets by jumping to 4.3% vs. the 4.1% expected, potentially sparking recession fears among investors.
Stock Market Today: Dow Stocks Amazon, Apple Show Mixed Results
Magnificent Seven stocks including Apple, Amazon.com and Nvidia (NVDA) were big movers on the stock market today.
Amazon.com stock plummeted nearly 12% in heavy volume after the company reported better-than-expected second-quarter profit but missed sales estimates. It also gave a third-quarter revenue outlook that was short of views. The stock is below the bottom of its most recent flat base.
Amazon stock sank further below its 50-day line and violated its 200-day moving average Friday. The big drop in heavy volume below the 50-day line triggered a sell signal. The stock is on track for its largest decrease since April 29, 2022, when it fell 14.05%, according to Dow Jones Market Data.
Apple stock improved from early losses and popped more than 2% after the iPhone maker beat expectations on its fiscal third-quarter earnings and sales. Its iPad tablet sales jumped 24% to $7.2 billion, helped by the release of new models.
Apple stock is extended from a cup base with a 199.62 buy point. It reclaimed its 21-day line after closing below it Thursday.
Nvidia stock gave back another 5% on top of Thursday’s 6.7% drop amid broad selling on the stock market today. The IBD Leaderboard stock remains below its 50-day line.
DoorDash Pops, Intel Weighs Down The Dow
DoorDash (DASH) surged more than 8% in heavy volume. The food delivery company beat estimates on second-quarter revenue but recorded a larger-than-expected loss. But the company’s prediction on order value for the third quarter beat views, plus DoorDash said it plans to invest in expansion.
Intel (INTC) plunged around 27% in huge volume after the company missed second-quarter profit and revenue projections. It also now predicts a third-quarter loss on sales that are lower than analyst forecasts.
Intel announced it is cutting about 15,000 workers and will suspend its dividend as part of its cost-cutting measures. Shares fell further below their 50-day line. The stock has lost around 58% so far this year.
Snap (SNAP) plummeted more than 25% after the social media company missed second-quarter sales estimates and met adjusted earnings expectations. The stock fell further beneath its 200-day line on the stock market today. Shares have lost around 40% so far this year.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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Read More: Stock Market Today: Dow Jones, S&P 500 and Nasdaq Sink; Amazon Tumbles
