Stock Market Today: Netflix, Amazon, AMD Lead Tech Rally After Strong Jobs Report

The Dow Jones Industrial Average and other major stock indexes showed solid gains Friday after the latest jobs report showed better-than-expected job growth in March. But small caps lagged amid rising interest rates on the stock market today as the 10-year Treasury yield hit an intraday high.

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The economy created 303,000 jobs in March, well above estimates from Econoday for 200,000. The unemployment rate ticked lower to 3.8%. February job growth was revised slightly lower to 270,000 from 275,000.

Traders in federal funds futures are still leaning toward the first Federal Reserve rate cut coming in June, although rate-cut expectations have been dialed back in light of a healthy jobs market. There’s also a concern that rates could stay higher for longer if inflation takes longer than expected to get down to the Fed’s 2% target.

The 10-year Treasury was up 5 basis points to 4.36% after hitting an intraday high of 4.4%.

Meanwhile, a big merger made headlines when Dow Jones stock Johnson & Johnson (JNJ) announced plans to buy Shockwave Medical (SWAV) for $13.1 billion, or $335 a share. Shockwave soared nearly 16% last week when the Wall Street Journal reported J&J as a potential suitor.

Shockwave’s technology helps break apart calcified plaque in arteries. J&J shares edged lower. Shockwave rallied 1.7% to around 325.50.

Stock Market Today

The Nasdaq composite and S&P 500 led the way in Friday trades, up 0.9% and 0.7%, respectively. The Dow Jones industrials rallied 0.4% and the Russell 2000 small-cap index edged up 0.2% on the stock market today.

Despite the gains, breadth was slightly negative on the Nasdaq and New York Stock Exchange. Volume was lower on both exchanges compared with the same time Thursday.

Top gainers among Dow Jones components included Amazon.com (AMZN), Caterpillar (CAT), Salesforce (CRM) and Microsoft (MSFT). Salesforce fell sharply Thursday in heavy volume. It’s now testing support at its 50-day line.

Early leaders in the Nasdaq 100 included Netflix (NFLX), Amazon and Advanced Micro Devices (AMD). Netflix and Amazon are still perched near highs, but AMD is in rougher shape after Thursday’s sharp break of the 50-day moving average in heavy volume.

WTI crude oil futures added 0.4% to near $87 a barrel

Signs Of Institutional Selling

Major stock indexes remain in a distribution phase. Thursday was a classic example of distribution as the Nasdaq composite and S&P 500 reversed sharply lower in higher volume. Distribution indicates institutional selling, and increased signs of institutional selling are often seen ahead of stock market pullbacks.

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The Nasdaq composite shows eight higher-volume declines since March 3, with four of them showing drops of at least 1%. Meanwhile, distribution has been a little less pronounced in the S&P 500. The index shows six higher-volume declines since March 8, but only one decline exceeded 1%. The count also includes a stalling session.

Inside the MarketSurge Growth 250, several top-rated growth stocks scored substantial gains on the stock market today, including Leaderboard stock Uber (UBER). Shares rallied nearly 4% in light volume as the stock tests support at the 50-day line.

Leading growth stocks in the IBD 50 also outperformed. The Innovator IBD 50 ETF (FFTY) was up 1.7%, helped by strong gains for Vertiv (VRT), FTAI Aviation (FTAI) and Leaderboard stock DraftKings (DKNG).

Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight.

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