The Dow Jones Industrial Average plunged more than 800 points early Thursday amid declining U.S. jobless claims. Tech giant Apple slid 5%, while Tesla skidded 9%. CrowdStrike dropped 10% on earnings.
Scott Lehtonen for Investor’s Business Daily:
Dow Jones leader Apple lost 5% early Thursday, extending Wednesday’s 2% decline, while Microsoft fell 4% after hitting record highs on Wednesday.
Stocks on the move in today’s stock market include Tesla which tumbled as much as 9% in morning trade.
The Dow Jones Industrial Average fell 2% morning trade, while the S&P 500 dropped 2.7%. The tech-heavy Nasdaq composite sold off 4.1%.
Early Thursday, the Labor Department said new jobless claims totaled 881,000 last week, better than the 958,000 Econoday estimate.
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 34.4% for the year through Wednesday’s close. Meanwhile, the S&P 500 is up 10.8%, while the DJIA is up 2.0% year to date, through the Sept. 2 close.
[AAPL] shares are about 7% off their all-time high… The blue-chip giant is the No. 1-performing Dow Jones stock in 2020, with a 79.0% advance through Wednesday’s close. It is also an IBD Leaderboard stock idea.
Among the top Dow Jones stocks, software leader Microsoft fell 3% early Thursday. Shares hit a record high on Wednesday, topping at 232.86.
MacDailyNews Take: Apple was due for a haircut, but the positive news is that, based on the latest jobless claims, the U.S. employment market is continuing its gradual progress during the COVID-19 pandemic recovery.
I don’t get it. More people are working so the market drops?
That’s because the market is BS and makes crap up as it goes along no rhyme or reason to it.
Market movement has little to do with the average Joe working. It’s the wealthy who move the market. The wealthy are happiest when the masses are struggling because it gives the wealthy a chance to transfer the little guys’ losses to their gains.
NYC is filled with empty apartments that most people can’t afford. The mayor isn’t making it any easier by keeping businesses closed. Money is mostly flowing at the top and nearly no money is flowing at the bottom.
Better than expected employment numbers means it is less likely that Congress will pump extra money into the economy in the short term. Like any large group of hyperactive children, Wall Streeters don’t like when the candy gets put on a higher shelf.
I recently heard a really good explanation to explain how the market moves in ways that seem contrary to what is “good for the economy.”
Don’t think of the stock market as reflecting investors’ belief in what direction the overall economy is headed.
Instead, it reflects investors’ belief in the degree to which the government is captured and beholden to the interests of the investor class.
In other words, back in March, when it plummeted, that reflected concern that the U.S. government would take drastic measures to protect the people of the country. For example, it would give people money, etc., and perhaps would use emergency powers to nationalize various businesses, or otherwise do things that indicate that investors’ interests wouldn’t be placed first.
Then it became clear that, no matter what else it did, the U.S. government would use the emergency to funnel money into large corporations (much more than it did for small businesses), NOT interfere with any large corporations, etc. That explains the fairly rapid rebound from the bottom of the market drop, even while small businesses stayed close, people were laid off, people suffered and died, and many people could not afford rent.
So, once you realize that, the movement of the stock market makes a lot more sense. It doesn’t reflect an actual long-term bet on the economy, but instead a bet on “will plutocrats be allowed to keep robbing the people?”
Homerun…
Apple took one on the chin today. Let’s hope tomorrow a bunch of Robinhood traders think it might be good to buy more Apple on the dip. Apple is only getting close to correction territory, which is usually said to be about a 10% haircut. I have no concerns about Apple not recovering from any correction.
There’s no reason for long-term AAPL holders to be concerned with this drop, imo. It might actually be a reason for a bit of a pick-up on the other side, as people see the drop as a buy opp.
Plus, the Fed isn’t done with infusing. Bigger reason for Apple “hope,” (and increased US debt).
Hi guys, get real here and follow the beat. Apple will annonce something on september 8. It is the old normal that just before, their shares are droppin for people to buy in some more and jump in the rollercoaster until christmas…
September is typically a “pull back” month.
I have money put away for a rainy day. Looks like that day is coming.
As long as you save and invest something.