Dow Jones Drops Amid Weak Jobs Report, But Cathie Wood Boosts This IPO Stock

Key market indexes headed south early Wednesday after a disappointing jobs report, as the Dow Jones Industrial Average shed more than 200 points.


The Nasdaq was off almost 0.1%, while the S&P 500 slipped 0.4% and the Dow Jones industrials fell 0.6% in today’s stock market. Small caps tracked by the Russell 2000 were down less than 0.1%. Volume was lower on the NYSE but higher on the Nasdaq vs. the same time Tuesday.

Among exchange traded funds, Innovator IBD 50 (FFTY) rose 0.6%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) faded 0.1%.

Early Tuesday, ADP reported U.S. nonfarm private employers added 330,000 workers last month. That was well below the 692,000 jobs added in June and forecasts for an increase to 700,000.

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states had relaxed restrictions as vaccinations continued to roll out and cases decreased. But mask mandates are returning in some areas as the delta variant spreads.

Covid-19 Update

Cumulative Covid-19 cases worldwide topped 200 million, with more than 4 million deaths, according to Worldometer. In the U.S., cases have surpassed 36 million with nearly 631,000 deaths.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34924.75 -191.65 -0.55
S&P 500 (0S&P5) 4409.47 -13.68 -0.31
Nasdaq (0NDQC ) 14754.05 -7.24 -0.05
Russell 2000 (IWM) 220.42 -0.44 -0.20
IBD 50 (FFTY) 46.10 +0.45 +0.99
Last Update: 10:30 AM ET 8/4/2021

Although the numbers of new cases and deaths in the U.S. have decreased dramatically, cases are back on the rise in some states due to delta.

As countries rush to vaccinate their populace, BioNTech (BNTX), Pfizer‘s (PFE) partner on their Covid-19 vaccine, rallied nearly 7% in fast turnover to a new high. News reports said the Food and Drug Administration may give full approval to their vaccine by early next month.

BioNTech shares are nearly 50% extended from a 252.88 buy point cleared last month. The IBD Leaderboard stock triggered the eight-week hold rule after hitting its 25% profit goal in a short time. It’s in the third week of the hold period.

Paycom, Robinhood Soar

Paycom Software (PAYC) gapped up and soared 8% in heavy trade to its highest level in nearly six months. That sent the stock past a 404.87 early entry. Paycom reported better-than-expected earnings after the close. Earnings jumped 56% as revenue rose 33%, the best gains in years, as rebounding employment spurs demand for the human resources software maker. Paycom also raised guidance.

In IPO news, Robinhood Markets (HOOD) soared more than 50% to a new high, extending Monday’s 24% gain. The startup priced 55 million shares July 28  at $38 a share, raising $2.1 billion. But the pricing came in at the low end of its expected range.

Late Tuesday, fund manager Cathie Wood’s ARK Fintech Innovation (ARKF) fund revealed a purchase of 89,622 shares, bringing its total holding to 682,031. Earlier Tuesday, ARK Innovation ETF (ARKK) disclosed that it held around 4.9 million shares of Robinhood stock, representing a weighting of 0.82% in the fund.

But General Motors (GM) crashed more than 7% in heavy trade after its earnings missed views. The carmaker, though, beat on revenue and raised its full-year estimates amid strong pricing.

Toyota Motor (TM) and Honda Motor (HMC) reported better-than-expected quarterly earnings overnight, though chip shortages remain a concern. Toyota shares fell 2.5%, while Honda advanced 1.5%.

On The Dow Jones

Amgen (AMGN), down more than 2% in heavy volume, led the downside on the Dow. Shares breached the 50-day and 200-day moving average lines. Amgen stock continues to shape a flat base with a 261.10 buy point. The biotech giant reported Q2 earnings and sales that beat Wall Street targets but trimmed its outlook for the full year.

Among other blue chip losers, Walgreens Boots Alliance (WBA), Boeing (BA) and Chevron (CVX) gave up more than 1% each.

Boeing stock dipped as a test flight of its Starliner space capsule was delayed indefinitely due to a technical issue. The Boeing Starliner was initially scheduled to launch Tuesday afternoon from Cape Canaveral Space Force Station in Florida.

Nike (NKE) and American Express (AXP) were among the few blue chip gainers, up about 0.5% apiece.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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