The major indexes fell Friday morning but remained above key levels of support. The Dow Jones Industrial Average fared the best, while the Nasdaq took the biggest loss.
The Labor Department released May's payrolls report before the market's open. The U.S. economy added 390,000 jobs in May, higher than the 325,000 estimate from economists. The unemployment rate came in at 3.6%. The data showed a slower but still solid pace of hiring during the month.
For comparison, April saw payrolls rise by a revised 436,000. Although jobs growth for May slowed, it remains historically high. Jobs gains have averaged 408,000 over the past three months, compared to payroll growth that averaged about 164,000 per month in 2019.
The Federal Reserve has been worried about the overly tight job market which has only added to inflationary pressures, giving policymakers more reason to hike interest rates.
Dow Jones Today
The Dow Jones Industrial Average traded down 0.9% while the S&P 500 lost 1.5%. The small-cap Russell 2000 was off 1.3%, while the Nasdaq declined 2.4%. Volume was lower on the Nasdaq and on the NYSE vs. the same time on Thursday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33117.60 | -130.68 | -0.39 |
| S&P 500 | (0S&P5) | 4137.57 | -39.25 | -0.94 |
| Nasdaq | (0NDQC ) | 12125.34 | -191.56 | -1.56 |
| Russell 2000 | 187.64 | -1.12 | -0.59 | |
| IBD 50 | 32.92 | +0.17 | +0.52 | |
Last Update: 10:22 AM ET 6/3/2022 |
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From a technical perspective, the Dow Jones and other major indexes remain above support at the 21-day exponential moving average. This will be an important area to watch in the coming days. Ideally, the indexes will be able to stay above this area and power higher to reclaim their 50-day lines as well.
Meanwhile, the Innovator IBD 50 ETF fell 0.5% but still held up better than the other indexes.
Among S&P 500 sectors, energy outperformed and was the only sector showing gains Friday morning. Consumer discretionary and technology sectors lagged.
Oil Stocks: New Fortress Energy Breaks Out
The Energy Select Sector SPDR ETF rose 0.7% as oil prices traded up over 1.5% early Friday. On Thursday, OPEC and other major oil producers agreed to increase oil production by 648,000 barrels a day in July and August, a larger boost than expected. Despite that, the price of U.S. crude oil advanced to over $118 a barrel.
Additionally, oil prices could see some impact from the weekly rig count census from Baker Hughes, due out at 1 p.m. ET.
Integrated oil and gas play New Fortress Energy rose over 4% in early trading and moved above a 49.40 buy point, while its relative strength line notched a new high. But in the afternoon, shares sold off and were down over 1%. The stock is now below its buy point. Shares held well above their 50-day line during the basing period. The stock has been rising in light volume, which could be a cause for concern. Yet, today's breakout came in strong volume.
The oil stock is among the latest to break out as many in the oil and gas field have had strong gains. The industry remains in its own bullish uptrend thanks mainly to firm energy prices.
Other oil and gas breakouts this week include Excelerate Energy and liquefied natural gas play Golar Energy.
Oil field services giant Haliburton traded 3% below a 42.70 cup-base entry on Friday as shares rose over 0.9% in morning trading. Shares rose over 12% last week and regained their 50-day line. The RS line notched a new high this week, ahead of the potential breakout.
Dow Jones industrials component Chevron is trading just above a flat base 174.86 buy point, according to IBD MarketSmith. The 5% buy zone tops out at 183.60 but Chevron remains well below this as shares continue to slowly climb. On the bullish side, the stock has held support above its 50-day line the past few weeks.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
