The Dow Jones Industrial Average dived following a stronger-than-hoped-for jobs report. Apple was the worst-hit blue chip. Tesla fell 9% after CEO Elon Musk announced a workforce shake-up. Amazon was also falling after a key executive resigned.
A couple of stocks still attempted to make bullish moves amid the painful action. New Fortress Energy and Northrop Grumman both tested buy points after forming bullish bases.
Volume was lower on both the Nasdaq and the New York Stock Exchange compared to the same time Thursday, a sliver of comfort.
Meanwhile, the yield on the benchmark 10-year Treasury note rose four basis points to 2.96%. West Texas Intermediate crude oil futures popped almost 2% to just under $119 per barrel.
Stocks were punished after new data from the Labor Department showed the U.S. economy added 390,000 jobs in May. This exceeded the 325,000 estimate from economists. The unemployment rate came in at 3.6%.
"The latest employment report showed slower job growth (versus April's number) and potentially softening inflation, but still keeps the door open for the Fed to continue with its rate hiking campaign well beyond the summer," Oanda senior market analyst Edward Moya said in a note to clients.
Nasdaq Dives As Small Caps Struggle
At 1:30 p.m. ET, the Nasdaq fell more than 2.4%, but moved mildly off lows for the day. Micron Technology was a major laggard as it dipped around 7%.
The S&P 500 was off lows as it skidded about 1.5% lower. American Airlines struggled here as it fell around 7%.
The S&P sectors were mainly negative. Consumer discretionary and technology were the areas getting hit the hardest. Energy was the only positive as oil continues to gush higher.
Small-cap investors were fighting back against the hungry bears. The Russell 2000 was down less than 1%.
Yet growth stocks were holding up fairly well in comparison. The Innovator IBD 50 ETF, a bellwether for growth stocks, was off lows as it slid fractionally lower.
Dow Jones Today: Apple Stock Turned Over
The Dow Jones Industrial Average fared best out of the major indexes but still gave up around 279 points, or just under 1%.
Apple stock was the worst performer on the blue chip index as it plunged nearly 4%. It was off lows for the day, though. AAPL stock remains below its major moving averages and is now testing support at the 10-day line, according to MarketSmith.
Chip giant Intel was also lagging badly as it fell more than 2%.
Caterpillar was shining brightest as it gained more than 1%. The construction machinery maker's stock is aiming to drive higher and move away from its 50-day moving average.
Tesla Stock Crushed As Elon Musk Slashes Jobs
Tesla stock's abysmal run in 2022 got even worse Friday as the stock slumped 9%. The move came in heavy volume.
The EV stock was hammered after CEO Elon Musk told employees via email that 10% of salaried employees are to be fired, Reuters reported.
"Tesla will be reducing salaried head count by 10% as we have become overstaffed in many areas," Musk said in his missive. "Note this does not apply to anyone actually building cars, battery packs or installing solar."
He also said that the firm will be increasing its head count of hourly-paid employees.
It comes after Musk said he had a "super bad feeling" about the economy.
He also previously said on Twitter that employees unwilling to spend a minimum of 40 hours in the office per week can "pretend to work somewhere else."
Tesla stock crashed beneath its 21-day exponential moving average and is now testing support at the 10-day line. It is miles below its major moving averages.
Tesla stock is even further off its current consolidation entry of 1,208.10, MarketSmith analysis shows.
Amazon Stock Falls As Key Executive Quits
Amazon stock was getting hit after it announced a key executive is to stand down.
The firm said in a filing that Dave Clark, the chief executive of the company's worldwide consumer business, is resigning as of July 1. He has been at the e-commerce giant for 23 years.
Clark has been an important right-hand for the firm's CEO Andy Jassy. He was a key figure in expanding Amazon's sprawling logistics network. A replacement has yet to be named.
"The past few years have been among the most challenging and unpredictable we've faced in the history of Amazon's Consumer business, and I'm particularly appreciative of Dave's leadership during that time," Jassy said in a blog post.
Clark said in a Tweet that it was time for him to "build again" after a fruitful spell at Amazon. He also said he is confident his teams have been "set up for success" in his stead.
Amazon stock was down about 2.5%. At 2,441, shares trade 35% off their 52-week peak of 3,773. AMZN looks set to end a six-session winning streak. AMZN remains shy of its key major moving averages, specifically the 50-day average and the 200-day line.
Is Market Pause Bullish? 'Super-Bad' Sell-Off For Tesla
Outside Dow Jones: 2 Leaderboard Stocks Test Entries
A couple of Leaderboard stocks managed to pass buy points amid the challenging action.
Natural gas play New Fortress Energy is staging a breakout, though it is now trading virtually flat. This means it now sits below its buy zone after breaking out past a consolidation pattern entry of 49.40.
Nevertheless, exposure to the stock was raised on the Leaderboard list of top stocks. It is in the top 2% of stocks in terms of price performance over the past 12 months.
NFE aims to become the No. 1 supplier of carbon-free power in the world by helping customers convert or build gas-fired facilities
Defense play Northrop Grumman is also just below its entry after breaking out of a cup-with-handle base. The ideal buy point is 477.36.
Big Money has been snapping up the stock of late. In total, 49% of shares are currently held by funds.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
