The Dow Jones Industrial Average slipped lower, but the Nasdaq was the major index that plunged hardest. Tesla (TSLA) took a tumble following an Elon Musk move. Boeing (BA), Microsoft (MSFT) and Apple (AAPL) were among the worst blue chips. But it was DocuSign (DOCU) investors who were most badly hurt as the stock cratered on earnings.
XOne area that was managing to show strength was IBD's Building-Residential/Commercial group. Its relative strength line continues to spike, and a few stocks even managed to move higher.
Ongoing worries over the omicron Covid variant and a disappointing jobs report weighed. The Labor Department said Friday that U.S. employers added 210,000 jobs in November, badly missing analyst expectations for 545,000 nonfarm job additions, according to Econoday data. It was also far below an upwardly revised 546,000 jobs in October.
Oanda senior market analyst Edward Moya said there could be even more wild action for the next few weeks.
"U.S. stocks declined after a soft employment report and as traders remain on edge over the uncertainty with the omicron variant," he said in a note to clients. "The next couple of weeks will remain volatile as the focus falls on the latest inflation report, the December 15th FOMC meeting, and further clarity on the impact with the omicron variant."
Nasdaq Falls As DocuSign Sinks
The Nasdaq was the worst performing major index, closing down 1.9%. The move saw the tech-heavy index close below the key 50-day moving average.
DocuSign was the worst performer on the high growth index. It plunged more than 42% after its Q4 sales guidance came in below analyst expectations. Volume was especially concerning, with the move coming in more than 3,700% above average.
The S&P 500 also struggled, giving up 0.9%. Adobe (ADBE) was the worst performer here, falling 8.2%. ViacomCBS (VIAC) fared best, rising just over 5%.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34579.55 | -60.24 | -0.17 |
| S&P 500 | (0S&P5) | 4538.42 | -38.68 | -0.85 |
| Nasdaq | (0NDQC ) | 15085.47 | -295.85 | -1.92 |
| Russell 2000 | (IWM) | 214.59 | -4.62 | -2.11 |
| IBD 50 | (FFTY) | 44.68 | -1.59 | -3.44 |
Last Update: 4:08 PM ET 12/3/2021 |
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The S&P sectors nearly all fell, though consumer staples, health and utilities managed to move higher. Technology and consumer discretionary turned in the biggest losses.
Small caps were once again attacked by the bears, with the Russell 2000 dropping 2.1%. It fell deeper into correction territory.
But it was growth stocks that were hit most harshly, with the Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, falling 3.4%.
Dow Jones Slips As Apple Stock, Microsoft Fall
The Dow Jones Industrial Average rallied into the close but still posted a loss of 0.2%. The blue chip index is now testing support at its 200-day moving average.
Microsoft stock was the worst performer on the Dow Jones today, falling 2%. The Leaderboard name remains slightly extended from a 305.94 buy point.
Boeing stock also lagged, dipping nearly 2%. This caused it to fall further from its 50-day and 200-day lines.
It has now given up a big chunk of Thursday's gain, which came after China's aviation regulator cleared the Boeing 737 Max to return to flying.
Apple was not too far behind as it turned in a loss of 1.2%. The stock has been struggling since a Bloomberg article claimed the firm had told some suppliers there could be slowing demand for the iPhone 13.
Tesla Stock Dives After Elon Musk Sells More
EV giant Tesla plunged more than 6%, though volume was not especially high. The stock sliced below its 21-day exponential moving average and is now close to the key 50-day line.
The stock was punished after regulatory filings revealed Thursday that CEO Elon Musk had sold more than 934,000 shares. The value of the stock came in at just over $1 billion.
Musk also exercised options to buy 2.1 million shares. The eccentric executive has now sold more than 10 million Tesla shares since Nov. 8.
Tesla stock remains well above a 764.55 buy point of a cup with handle and remains volatile. The IBD Leaderboard stock is also extended past an alternate entry of 900.50. It previously triggered the eight-week hold rule from this buy point.
Shares are now about 16% off their 52-week high.
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Leaderboard Stock Shows Steel
Steel play Nucor is offering a silver lining to investors as it powered 2.7% higher. It is sitting above a previous trendline buy point, and closed Friday at 110.50.
The move saw the stock retake its 21-day exponential moving average. Its relative strength line has been making slow gains in recent weeks. Investors will want to see the line turn higher.
The metals giant was boosted after it raised its quarterly dividend 23% to 50 cents a share. Nucor's board also approved the repurchase of up to $4 billion of stock.
Nucor is a member of the IBD Leaderboard list of leading growth stocks.
Homebuilders Offer Pocket Of Strength
Those looking for a pocket of strength in the stock market could do worse than look at the current performance of the IBD's Building-Residential/Commercial industry group.
It saw its relative strength line move higher again Friday, and it has generally been rising since the start of November.
A number of stocks managed to move higher, including Green Brick Partners (GRBK), which rose 0.8% and KB Home (KBH), which rose 0.3%.
Among ETFs, SPDR S&P Homebuilders (XHB) slipped 0.4%, while triple-leveraged Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL) fell 1.3%.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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