The Dow Jones Industrial Average rallied, but the Nasdaq was strongest, as a new U.S. monthly jobs report eased fears the Federal Reserve will increase interest rates. Facebook (FB) stock popped after it emerged former President Donald Trump will now be banned from the platform for at least two years. Apple (AAPL) and Microsoft (MSFT) were among the leading blue chips.
The price of Bitcoin fell again after Tesla (TSLA) CEO Elon Musk made another negative tweet about it, while payments technology stock Square (SQ) rose after CEO Jack Dorsey said it is considering creating a new Bitcoin wallet. Meanwhile China stock 360 DigiTech (QFIN) led stocks passing key buy points.
The Labor Department has reported the U.S. economy added 559,000 jobs in May. This was more than double April’s number, but fell short of economists’ estimate for a 650,000 net job increase. The unemployment rate dropped to 5.8%. The fact it came in under expectations has eased fears the Fed will move quicker than anticipated to raise interest rates.
“The May nonfarm payroll report showed that the economy is still far from showing substantial progress with the labor market recovery,” Oanda senior market analyst Edward Moya said in a research note.
Nasdaq Ends Week Positive As Tech Stocks Surge
The Nasdaq was the top-performing major index amid a rally in tech stocks, gaining 1.5%.
DocuSign (DOCU) fared best amid strong results, gaining just shy of 20%. The firm reported a 54% jump in billings for the April-ended quarter. That sharply beat the company’s own guidance of a target range of $457 million to $467 million.
Please see more analysis at IBD Leaderboard on an aggressive buy point in the e-signature innovator.
U.S. Stock Market Today Overview
Last Update: 4:04 PM ET 6/4/2021
The S&P 500 closed near a record high after notching a gain of 0.9%. Biogen (BIIB) was the star of the day here, rising 5%.
The S&P sectors were almost all positive, with technology leading the pack ahead of communication services. Utilities were the only laggard, down slightly as a group.
Small caps had a decent session, with the Russell 2000 rising 0.4%. However, growth stocks fared far better, with the Innovator IBD 50 ETF (FFTY) jumping 1.4%.
Apple Stock, Microsoft, Lift Dow Jones
The Dow Jones Industrial Average lagged the other major indexes, but still closed up 0.5%.
Tech giants Apple and Microsoft were among the biggest gainers. Apple rose 1.9%, while Microsoft posted an even meatier gain of 2.1%.
A new base is forming for Leaderboard name Microsoft, but it is lagging the 263.29 buy point.
But both of these stocks were outperformed by Salesforce.com (CRM). The day’s leading Dow Jones component closed up 2.9%.
Facebook Stock Gains As Trump Ban Confirmed
Facebook announced Friday former President Donald Trump will not have his Facebook or Instagram accounts reinstated until at least January 2023.
This prevents him from using the platforms to communicate to followers until after the 2022 U.S. midterm elections.
“We will evaluate external factors, including instances of violence, restrictions on peaceful assembly and other markers of civil unrest,” the firm said in a blog post.
It also said the ban will be extended if “there is still a serious risk to public safety.”
Elon Musk Tweet Hurts Bitcoin; Square Pops On New Crypto Wallet
The price of Bitcoin sank again after Tesla (TSLA) CEO Elon Musk once again lashed out against it on Twitter.
He tweeted a breakup meme, which was accompanied by a “#bitcoin,” as well as a broken-heart emoji. He later tweeted another meme, which said, “I miss you.”
Bitcoin was down 4% vs its price 24 hours ago, according to Coindesk. Bitcoin earlier was sent spiraling lower after Musk announced Tesla would no longer accept Bitcoin as a form of payment.
Square stock meanwhile rose after CEO Jack Dorsey said the firm is considering creating a new digital currency wallet. It will let holders and buyers of the crypto have custody of their coins, rather than them staying in the possession of the exchange where they bought it.
Square stock was up almost 1%. It remains below its 50-day line however, and is well shy of a consolidation buy point of 283.29.
China Stock Leads Breakouts
China stock 360 DigiTech led a number of stocks passing buy points. The stock is in the buy zone after passing a cup base buy point of 35.25.
This is a third stage base, and IBD research has found later stage bases (third and fourth) are less likely to succeed. However the relative strength line has just hit a new high, which is a bullish indicator. 360 DigiTech operates a digital consumer finance platform.
The Capital Bank parent saw its relative strength line hit a new high. It holds a perfect Composite Rating of 99 due to its top notch earnings and stock market performance.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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