News of sluggish job growth in April brought more sellers into the stock market early Friday.
The Nasdaq, S&P 500 and Dow Jones industrial average each lost around 0.1%.
Distribution days are starting to cluster in the Nasdaq, not the best of signs for the bulls. The composite shows four of them since April 28.
In economic news, the economy created 160,000 jobs in April, below the consensus estimate of 200,000. The unemployment rate held steady at 5%. The sluggish growth seemed to support Federal Reserve Chair Janet Yellen’s dovish tone at recent Fed meetings. The odds of a rate hike at the June 15 meeting are 6%, according to CME Group FedWatch.
Gold rallied 1.5% to around $1,291 an ounce, and benchmark crude oil futures fell 1% to $43.71 a a barrel, while the 10-year Treasury yield was unchanged at 1.75%.
In the stock market today, Herbalife (HLF) soared 10% on strong earnings and news the company could be nearing a settlement with the Federal Trade Commission over allegations of a pyramid scheme. Herbalife cleared a base with a 63.69 buy point. Shares were recently trading around 64.
Herbalife’s industry group, Cosmetics/Personal Care, is only 3% off its high. See who the group leaders are with IBD Stock Checkup.
Wynn Resorts (WYNN) added 3% after reporting earnings late Thursday. Headed into Friday, Wynn was still 24% off its high, but its Relative Strength Rating had improved to 86. The 100 price level is still a resistance level for the stock.