Your Weelky Blip 9/4/20

Your Weelky Blip 9/4/20

Stocks ended the trading week with another down day and tech stocks continue to lead the selling while value stocks held fairly steady. At the close the Dow was off 159 on lighter trading volume to close at 28,133. During the day the Dow opened higher but then sold off 600 points before gaining most of that back. For the week the Dow was down 1.6% or roughly 500 points net. IBD continues to show markets in rally mode but this week’s action might move the meter to “rally under pressure”.
With stocks pulling back the past two days people are looking for a cause but so far there is no obvious answer other than general profit taking after indexes hit record highs. Part of the selloff however is being attributed to sector rotation as some profits taken out of high flying tech stocks appears to be in the early stages of picking up beaten down value plays like banks, utilities and manufacturing. Another reason for the selloff might be associated with nervousness about continued border skirmishes betwixt China and India over land that has been claimed by both sides for years.
The August jobs report came in better than expected. The unemployment rate fell from 10.2% to 8.4% as the US economy added 1.4 million jobs. Within the report food and drinking establishments added 133,600 jobs, healthcare added 75,300, retailers added 249,000, factory employment rose 29,000 and construction added 16,000. According to the monthly household survey, 13.6 million Americans are unemployed which is down from 23.1 million in April.
Markets will be closed on Monday for the Labor Day holiday

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