Title: Dow Jones Drops Over 400 Points Following Strong Employment Report; Cathie Wood Sells Tesla Stock
Subtitle: Ark Invest ETFs purchase Meta Platform (META) shares amidst flood of economic data
Date: [Insert Date]
Byline: [Insert Author Name]
The Dow Jones Industrial Average experienced a significant sell-off of more than 400 points on Thursday, reacting to a robust monthly employment report. At the same time, Cathie Wood’s Ark Invest ETFs engaged in stock trading activities, selling off Tesla stock while acquiring shares of Meta Platforms (META).
The stock market was bombarded with a flood of economic data on Thursday. First, ADP’s June National Employment Report revealed a surge in jobs, reporting an increase of 497,000 jobs compared to an estimated increase of 235,000. In May, ADP reported a gain of 278,000 jobs. This report served as a preview of the upcoming June payrolls report from the Labor Department.
However, the Labor Department’s report on first-time claims for unemployment assistance showcased a rise to 248,000, exceeding the previous week’s figure of 239,000. Additionally, the S&P Global Services Purchasing Managers’ Index surpassed estimates with a reading of 54.4, while the June Institute for Supply Management services index rose to 53.9, above the estimated 50.8. Lastly, the Labor Department’s JOLTS report indicated a decline in job openings to 9.824 million in May, compared to April’s 10.1 million.
In stock market activity, Tesla experienced a decline of 3.2% on Thursday, coinciding with Ark Invest ETFs’ sale of nearly $8 million worth of the company’s stock, according to Ark’s daily trading update. In contrast, Meta stock lost 0.3% as Cathie Wood purchased shares valued at approximately $1.6 million in the social media giant. Meta recently launched Threads, a Twitter rival.
Renowned tech companies Apple and Microsoft, listed on the Dow Jones, also witnessed declines after the stock market opened. Other notable stocks to watch during the ongoing market advance include Chipotle Mexican Grill, Dynatrace, MongoDB, Lam Research, Nvidia, JPMorgan Chase, Visa, and Salesforce, all members of the Dow Jones.
The Dow Jones Industrial Average fell by 1.2%, while the S&P 500 dropped 1.25%, and the tech-heavy Nasdaq composite experienced a 1.4% decline during morning trading on Thursday. In terms of ETFs, the Nasdaq 100 tracker Invesco QQQ Trust traded down 1.5%, while the SPDR S&P 500 ETF lost 1.2%.
The 10-year U.S. Treasury yield rose to 4.05%, surpassing its late May highs. Oil prices also experienced a slight decline on Thursday morning, despite solid gains the previous day.
In other significant stock market movements, the S&P 500 and Nasdaq composite both slipped around 0.2% on Wednesday, while the Dow Jones Industrial Average fell by 0.4%. The Russell 2000, measuring small-cap stocks, experienced a 1.3% decline, potentially impacting market breadth.
Key companies to watch currently include JPMorgan, Salesforce, Visa, Chipotle, Dynatrace, ASML, Cloudflare, Roku, and Tesla. These stocks are presenting buying opportunities based on their market positions and recent performance.
Investors are closely monitoring the stock market at present, especially as the market approaches this year’s highs. This period is crucial for market participants to gain insights from IBD’s The Big Picture column.
Overall, the stock market experienced significant movement due to the strong employment report and trading activities by influential entities like Cathie Wood’s Ark Invest ETFs. The market remains volatile as economic data continues to impact investor sentiment and decision-making.