The Dow Jones Industrial Average slipped as President Joe Biden blamed the Covid-19 Delta variant and the unvaccinated for causing Friday’s weak jobs report. However, the Nasdaq and growth stocks offered a bright spot. Leaderboard stock DocuSign (DOCU) popped on earnings, while MongoDB (MDB) exploded. Payments stock Visa (V) was one of the top blue chips, even as American Express (AXP) lagged.
President Biden said that the Labor Department reported Friday that nonfarm payrolls in August increased by 235,000. This was a fraction of the 720,000 new hires expected by economists.
“There’s no question the delta variant is why today’s job report isn’t stronger,” Biden said at the White House.
The president also lashed out at Americans who have still yet to get a Covid-19 vaccine.
“This is a continuing pandemic of the unvaccinated,” he said. “Too many have not gotten vaccinated, and it’s creating a lot of unease in our economy and around our kitchen tables.”
Nasdaq Shines As Smalls Caps Lag
U.S. Stock Market Today Overview
Last Update: 2:58 PM ET 9/3/2021
Among the S&P sectors, technology and communication services were among the few posting a gain. Energy and financials were struggling the most.
Small caps were given a spanking by the bears, with weakness in financials weighing. The Russell 2000 fell 0.5%.
Growth stocks provided a silver lining for investors, with the Innovator IBD 50 ETF (FFTY) up 1.1%.
Dow Jones Today: Visa Stock Loses Lead
The Dow Jones Industrial Average was lagging the other major indexes, posting a loss of 0.1%.
It was a day of contrasting fortunes for two of the biggest names in payments. Visa had been the standout stock on the index, but pared some gains as it rose 0.6%. It is trying to rebound off its 200-day moving average amid bearish action.
It was overtaken by Salesforce.com (CRM), which rose about 1%.
However, American Express was having far less luck than either, turning in the worst performance on the Dow Jones today. It slipped almost 2%, though it was off lows. It has ceded its 50-day moving average, and is at the bottom of a flat-base pattern.
DocuSign Stock Pops As Mongo Explodes
DocuSign stock powered up by more than 5% following its earnings report. It is currently in a buy zone from a 291.29 entry.
The stock was buoyed after results beat expectations and the company’s outlook came in slightly above views.
The company reported earnings of 47 cents per adjusted share, up 176% from the year-earlier period. Revenue rose 50% to $511.8 million, including acquisitions.
Analysts at Wells Fargo, JPMorgan, RBC, UBS and other firms raised their price targets on DocuSign stock Friday, giving it an added boost.
Meanwhile database software stock MongoDB exploded in massive volume, gaining more than 25%.
The move saw its soar past its profit goals for a cup with handle. The ideal entry point here was 393.73, MarketSmith analysis shows.
The firm’s loss of 24 cents per share was better than analysts expected, with revenue rising 44% vs. year-ago levels and coming in above views. It also gave positive revenue guidance for the current quarter.
The high volume move comes despite the stock’s poor earnings track record as it chases growth. Mongo stock, which started trading in late 2017, has an EPS Rating of 13 out of 99.
Deere Stock Tests Buy Point
Agriculture machinery giant Deere managed to pass a cup with handle and its entry of 388.62. It is currently in the buy zone.
Volume was not idea on the move, which is a negative. However the relative strength line is trying to make progress.
Deere stock currently boasts solid overall performance, with earnings a particular strength.
The stock has seen earnings grow by an average of 138% over the past three quarters. It also currently holds second position in the Machinery-Farm Industry Group.
Deere stock has posted a gain of around 45% so far in 2021. This is far in excess of the S&P 500’s gain of more than 20%.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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