Blue chip stocks were under mild selling pressure in afternoon trading Friday after President Trump threatened another $267 billion in China tariffs. Intel (INTC), Procter & Gamble (PG) and United Technologies (UTX) lagged in the Dow Jones, while Tesla (TSLA) and semiconductor stocks were a drag on the Nasdaq 100.
The Dow Jones industrial average, S&P 500 and Nasdaq composite were down around 0.1% to 0.2%. Volume on the NYSE and Nasdaq was tracking about 5% to 10% lower than Thursday’s levels at the same time of day.
Shares of Tesla crashed 7% on a flurry of negative headlines. CEO Elon Musk appeared on the Joe Rogan podcast Thursday, drinking whiskey and smoking pot. Early Friday, two executives left the company.
More China Tariffs?
The $267 billion in additional tariffs would be in addition to $200 billion already proposed. Currently, only $50 billion in tariffs on Chinese imports are fully in effect.
In economic news, the August jobs report came in slightly better than expected, with nonfarm payrolls up 201,000. The unemployment held steady at 3.9%. Wages rose, fueling concerns about inflation. The 10-year Treasury yield jumped 7 basis points to 2.94%. According to CME Group FedWatch, there’s a 79% chance of another quarter-point hike at the December meeting. A quarter-point hike at the Sept. 26 meeting is widely expected.
In stock market results today, new issue Zscaler (ZS) bounced back with conviction after paying a visit to its 50-day moving average Thursday. Shares rose nearly 10% to 45.95. A breakout over a 44.08 entry didn’t get very far, but the security software name is back above the buy point.
Meanwhile, two IBD Sector Leaders soared on earnings. Shares of Five Below (FIVE) were up 13%, while Palo Alto Networks (PANW) added 4%.
Security software leader Okta (OKTA), an industry group peer of Palo Alto Networks, soared 20% to 72.25. It reclaimed a 61.10 entry.
Inside the MarketSmith Growth 250, small cap MCBC Holdings (MCFT) broke out in heavy volume, rising 13% to 33.56. It’s slightly extended past the 5% buy zone from a 31.36 entry.
Inside the IBD 50, top gainers included Health Insurance Innovations (HIIQ), Ulta Beauty (ULTA) and Match Group (MTCH).