Dow Jones Up As Microsoft, Apple Lead; Stock Market Rallies On Strong Jobs Data

Stocks rallied midday Friday with the Dow Jones Industrial Average up more than 100 points and the Nasdaq and S&P 500 hitting new highs.


The S&P 500 rose 0.5%, the Nasdaq gained 0.5% and the Dow Jones industrials climbed 0.3% in the stock market today. But small caps tracked by the Russell 2000 tumbled 1%. Volume was lower on both major exchanges vs. the same time Thursday.

Among exchange traded funds, Innovator IBD 50 (FFTY) fell 1.3%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) gained 0.6%.

Early Friday, the Labor Department said U.S. employers added 850,000 jobs in June. That was well above economist forecasts for 703,000 and an upwardly revised 583,000 new jobs for the prior month. The unemployment rate ticked up to 5.9% from 5.8% in May as more workers returned to the labor force. Economists expected a drop to 5.6%.

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states have relaxed restrictions as vaccinations continue to roll out and cases decrease.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34744.24 +110.71 +0.32
S&P 500 (0S&P5) 4339.17 +19.23 +0.45
Nasdaq (0NDQC ) 14590.22 +67.84 +0.47
Russell 2000 (IWM) 229.13 -2.26 -0.98
IBD 50 (FFTY) 44.99 -0.64 -1.40
Last Update: 12:06 PM ET 7/2/2021

Cumulative Covid-19 cases worldwide have surpassed 183 million, with nearly 4 million deaths, according to Worldometer. In the U.S., cases are approaching 35 million with over 620,000 deaths, although the number of new cases and deaths in the U.S. has slowed dramatically.

Dow Jones Winners And Losers

Microsoft (MSFT) and Apple (AAPL), up more than 1% each, led the blue chip index.

Microsoft advanced 1.3% to extend its breakout past a 263.29 buy point of a cup base, according to MarketSmith chart analysis. It’s near the top of the buy range, which goes up to 276.45. The software giant is an IBD Leaderboard and IBD Long-Term Leader stock.

The base is second stage, which indicates Microsoft stock could still have plenty of runway ahead. Stocks often make their biggest advance out of such early stage bases.

Apple added 1.1% in above-average volume, on track for a fifth straight advance. Shares remain in a buy zone from a 137.17 buy point of a cup base, which tops out at 144.03. Apple’s weekly chart shows a higher buy point of 145.19 off a 23-week consolidation.

Among other Dow winners, (CRM) and Visa (V) were up about 1% each.

But IBM (IBM) sank 4% in heavy trade to fall well below its 50-day line for the first time in four months. The stock briefly undercut the bottom of a flat base it had cleared in early June. President Jim Whitehurst, ex-CEO of Red Hat, is stepping down after three years at IBM.

Walgreens Boots Alliance (WBA) fell nearly 2% more this morning, extending Thursday’s 7% drop. The stock had plunged Thursday after reporting earnings, and is nearing its 200-day moving average.

Tech Titans Fueling Market Rally: These Three Are In Buy Range

Outside The Dow

Electronic parts maker Amphenol (APH) topped the 69.72 buy point of a first-stage flat base in heavy volume. The stock remains in potential buy range up to 73.21.

In IPO news, small-satellite launch provider Astra Space (ASTR) soared 16% Friday. On its first day of trade Thursday, shares rose 4.5%.

China’s Didi Global (DIDI) fell nearly 6% in volatile trade after Chinese regulators said they are investigating the company’s cybersecurity risks, Dow Jones Newswires reported. Didi went public Wednesday in an IPO that gave the ride-hailing company a $67 billion valuation. New user registrations are banned during the review, the regulator said.

Over in the IBD 50, Cerence (CRNC) soared 14% after Standard & Poor’s announced the software maker will be added to the S&P MidCap 400 index on Wednesday. Shares gapped up past a 120.10 buy point of a cup with handle in heavy trade.

But firearms maker Smith & Wesson (SWBI) and Cricut (CRCT) dived more than 11% each. Both stocks marked record highs during the week. Digital Turbine (APPS) and 360 DigiTech (QFIN) lost over 5% apiece.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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