Dow Jones Climbs Off Lows, Led By Surging UNH Stock; Tesla Stocks Moves Bullishly, Clears Key Technical Level

The stock market turned slightly lower in afternoon trading Friday after the monthly employment report showed stronger-than-expected job growth in June. Leaderboard stock UnitedHealth Group (UNH) was a top gainer in the Dow Jones Industrial Average. Tesla stock outperformed in the Nasdaq 100, up around 2%, while Enphase Energy (ENPH) led the S&P 500, up more than 3%.

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The economy created 372,000 jobs last month, much higher than the Econoday consensus of 270,000. The unemployment rate stayed at 3.6% for the fourth straight month. Average hourly earnings rose 0.3% from May, in line with estimates. Year over year, wages increased 5.1%, slightly ahead of the 5% consensus.

The Nasdaq composite was down 0.4%, but nicely off lows after falling 1.2% intraday; the S&P 500 slipped 0.3% and the Dow Jones industrials edged lower by 0.2%. The iShares Russell 2000 ETF (IWM) dipped 0.5%.

Enphase is prone to volatile price swings, but it’s in position for another breakout try over a 217.33 entry.

Tesla (TSLA) jumped above its 50-day line, helped by news that the company sold 78,906 China-made vehicles in June, up 145% from May.

Dow Jones Today

UNH joined Leaderboard on June 27 when it topped the 500 level. The health insurer cleared a cup-with-handle base today, rising nearly 2% to 523.68. It’s still in the 5% buy zone from the 518.30 entry, but earnings are due late next week.

Another managed care firm, Centene (CNC), also broke out in strong volume. CNC stock topped an 87.34 buy point, rising more than 3% to 88.17.

Other health care stocks outperformed in the Dow Jones today, including Amgen (AMGN), Johnson & Johnson (JNJ) and Merck (MRK). JNJ stock is holding above its 50-day line as it sits just below a 183.45 entry. MRK is also worth watching, with the stock just below a 95.82 entry.

Volume was lower on the NYSE compared to the same time Thursday. Nasdaq volume rose slightly.

The 10-year Treasury yield was up more than 8 basis points to 3.09%, with a 75-basis point rate hike fully baked into the market ahead of the July 26-27 Federal Reserve meeting. That would bring the federal funds rate to a range of 2.25% to 2.50%.

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A strong, three-session move in the 10-year yield has helped lift the Direxion 20+ Year Treasury Bear 3x ETF (TMV) above its 50-day line. TMV was up more than 4%, bringing its weekly gain so far to nearly 10%.

Outside the Dow Jones

Lantheus (LNTH) gave a buy signal with a bullish move above its 50-day moving average. Shares jumped more than 7%.

Lantheus has two main business segments: precision diagnostics and radiopharmaceutical oncology. Revenue growth has accelerated for two quarters in a row at LNTH, up 38% and 126%. Earnings are due in late July. The Zacks consensus estimate is for adjusted profit of 70 cents a share, up more than 500% from the year-ago quarter. Revenue is expected to soar 102% to $203.98 million.

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Lantheus was one of the top gainers in the MarketSmith Growth 250, along with drug distributor McKesson (MCK), which gave a buy signal, jumping more than 5%.

Inside the IBD 50, Humana (HUM) joined a rally in managed care firms. It’s still in the early stages of breaking out from a yearlong consolidation.

Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis.

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