The Dow Jones Industrial Average reversed from its lows and traded higher in today's stock market. Over the past hour of trading, the major indexes traded near their highs of the day. The Dow gained over 500 points, regaining all of yesterday's losses and then some.
Stock Market Today
The small-cap Russell 2000 index rose 0.9%. The Nasdaq composite advanced 1.5%. The S&P 500 held a gain of 1.8% while the Dow Jones posted a 1.7% increase. Volume was tracking higher on the Nasdaq and lower on the NYSE compared with the same time on Thursday.
The major indexes initially opened higher after February's stronger-than-expected employment report.
The U.S. economy added 379,000 jobs last month, sharply higher than Econoday's forecast for a 175,000 gain, as the hospitality sector began to recover. January payrolls were revised up to 166,000 from 49,000. The unemployment rate edged lower to 6.2% from 6.3% in January.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31430.02 | +505.88 | +1.64 |
| S&P 500 | (0S&P5) | 3833.40 | +64.93 | +1.72 |
| Nasdaq | (0NDQC ) | 12890.65 | +167.18 | +1.31 |
| Russell 2000 | 216.03 | +2.84 | +1.33 | |
| IBD 50 | 43.42 | +0.36 | +0.84 | |
Last Update: 3:12 PM ET 3/5/2021 |
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But shortly after, stocks sold off across the board as government bond yields extended their recent surge. The Dow sank over 100 points while the 10-year Treasury yield spiked above 1.6%. The yield is continuing higher above the S&P 500's dividend yield of 1.48%.
The indexes, however, rebounded strongly in afternoon trading. Over the past hour of trading, the Dow recouped all its prior day's losses. However, the Nasdaq remains on track to close lower for the week. This would be its third consecutive week of declines.
The Innovator IBD 50 ETF fell 0.4%, beating the major indexes on the downside. Shares of the ETF continued to fall below key support at the 50-day line. Stocks leading the downside in the growth-focused ETF on Friday were Digital Turbine and 360 DigiTech, with losses of over 6% each. Both are now testing their 50-day lines.
Solar, automaker and software stocks led the downside among IBD's 197 industry groups. Meanwhile, utilities, banks and food stocks were top performers. The market is undergoing a broad sector rotation away from technology stocks and into categories like banks, energy and utilities.
Dow Jones Today
The Dow Jones held a solid gain as many blue chips traded higher. Stocks leading on the upside included Cisco, Intel and Chevron.
Cisco stock rallied over 4% in heavy volume, regaining the 50-day moving average after the stock slipped below this level in recent days. Analysts at JPMorgan raised their rating on the company from neutral to overweight, saying they expect a recovery in enterprise tech spending.
Shares of Cisco remain roughly 6% off their 52-week high and may be forming a new proper base.
Elsewhere, Intel stock gained over 4% as shares moved toward the buy point of a massive double-bottom base, according to MarketSmith chart analysis. The base maintains a 65.21 entry. Shares remain 7% away from the key buy zone. The chart could also be interpreted as a cup-with-handle base with a lower entry at 63.64. Shares recently regained their 50-day and 200-day lines.
Meanwhile, Chevron rose nearly 4% in rising volume, on pace to notch a five-day win streak. Shares have surged nearly 9% this week as OPEC and key partners said they will extend current output cuts. Chevron stock is currently extended from a 95.92 buy point of a flat base, according to MarketSmith chart analysis. U.S. light, sweet crude prices were up more than 3% to $65.88 a barrel midday Friday.
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