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Day Ahead: 3 Things to Watch for September 4

Published 09/03/2020, 04:03 PM
Updated 09/03/2020, 04:05 PM
© Reuters.

By Christiana Sciaudone

Investing.com  -- It was ugly out there. Markets took a wallop of a beating on Thursday, battered by tech stocks, which have rallied unrelentingly this summer.

The Dow Jones Industrial Average plummeted by more than 800 points, with Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Salesforce (NYSE:CRM) leading the drop. All sectors of the Dow closed lower in the worst day for stocks since June.

Cruise lines and retail stocks held their own amid the red after reporting a return to operations and better-than-expected results, respectively.

And economic data that wasn't so bad didn't do much to ease the pain. The U.S. Department of Labor reported Thursday that initial jobless claims fell to 881,000 in the week ended Aug. 28, beating forecasts of 950,000. The ISM non-manufacturing index slowed to a reading of 56.9 last month, from 58.1 in July, missing economists' forecasts for a reading of 57, which Jefferies (NYSE:JEF) called a modest decline.

Here are three things that may move markets tomorrow:

1. Tech slaughter

Tech stocks led the market to slaughter on Thursday. Will they keep up the momentum? 

Apple, which pulled the Dow lower, led the stumble among the Fab 5 tech stocks, which include Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL) and Netflix (NASDAQ:NFLX).

Stay-at-home tech favorites Chegg (NYSE:CHGG), Zoom Video Communications Inc (NASDAQ:ZM) and Crowdstrike Holdings Inc (NASDAQ:CRWD) also tumbled, though the coronavirus pandemic hasn't yet dissipated, and no vaccine has been approved. We get earnings from DocuSign (NASDAQ:DOCU) after the market close on Thursday, which, if it beats, could provide a tiny spark of hope in the segment.

2. Jobs  

The August jobs report is out in the morning at 8:30 AM ET (1230 GMT). Non-farm payrolls are expected to come at 1.4 million. That compares to July's 1.7 million. The level of unemployment may have fallen slightly to 9.8% from the previous 10.2%.

3. Holiday weekend

Markets tend to be slower ahead of holiday weekend, but this one may be an exception after the roller-coaster week we've had. Labor Day on Monday means a much-needed break for investors. It also marks the unofficial end of summer and return to school, whatever that may mean from where you are sitting.

Rest up for what's sure to be a heart-stopping last few months of 2020.

  

 

Latest comments

welcome to back
The future of all industries is NEW technology. Tech stocks will continue to perform exceptionally well irrespective of these bumps that are being accentuated by dealers and traders who are hedging with puts. This will continue to be repeated every 2 months as tech stocks continue to be a larger part of businesses
The future of all industries is NEW technology. Tech stocks will continue to perform exceptionally well irrespective of these bumps that are being accentuated by dealers and traders who are hedging with puts. This will continue to be repeated every 2 months as tech stocks continue to be a larger part of businesses
creepy story. did the devil write it?
Nasdaq really fall yesterday and today I'm sure it will fall
Monday should be a buy then sell off , meaning stock should go up after this hard fall as some investors will think it will rebound ( stocks are so cheap compared to 3 days ago ) and then when they dont see the rebound bye bye .but my guess is ,the pre market will scare everyone ( because i expect a sell off premarket , because even if we ignored all the facts, we still have a stock market that has been soring for months now even the chart shape dont seem right ) and stocks will go down but not as bad as today but if the employment rate was below expected , then youll see a huge selloff that could sadly last for about a week or more ( with a possibility of having positive days as stocks try to break the resistance) but eventually the market will fall hard ( not crash ) but its gonna hurt . hope that helps , good luck to you .
won't be open Monday.
hopefully
they ran the it up to sell it off. they, who run things. so many days they NASDAQ ran up and up. it was not at all normal.
Felt like a controlled institutional dump.
yes pure manipulation .but retailers should be cautious rsi is @ overbought zone in Dow Jones.i exited all my positions @ opening and sitting with cash.not expecting big downside will trade in range 27800-29200 for sometime
 lol
I remember it was the bulls vs bears, now it's Robinhood against the world. You guys are nuts. A pro would know one single platform couldn't control the market. Make money and mind your business hater.
Felt like a controlled institutional dump.
To me it felt like Robinooders getting margin calls.
 This is a healthy pull back
It probably was a controlled one after the market was flooded with cheap, newly printed dollars. Pump up the market then crash it. But make sure you have a few put options so that you make money downhill as well then buy the cheap gold. Not the eft. The physical one, Robin Hood
Morning Bounce followed by selloff :)
No bounce, volatility is already up overnight. Likely straight drop then maybe a slight recovery on low volume. No trader on Wall St is going home early before this Labor Day.
No way will Trump let it happen two days in a row this close to elections
Did you see his tweet on Wed after the dow closed above 30k saying the we were lucky to have him as our president? The only thing he did was to lower corporate taxes, covid did the rest.
 and support coal - that new modern tech that's going to save the energy and climate crisis - exactly what we need - as opposed to helping coal mining firms and their miners re create themselves to renewable energy companies of course - which would have been the smart thing to do,
LOL
Seeing how everyone got hammered today I don’t see anyone trying to hold over the weekend
I don’t understand why everyone got hammered today. There were SO many clues that we were (and still are) in a bubble. VIX has been rising on up days due to upside call buying (too risky to buy shares), there have been tons of IPO announcements into an overheated mkt, retail sentiment was 98% bullish, P/C ratio incredibly low, retail covid WFH “traders” bid ZM up $140 in one day. What more did you need to know?
Google is in serious trouble. https://www.google.com/amp/s/www.nytimes.com/2020/09/03/us/politics/google-antitrust-justice-department.amp.html
go deeper ! 10%lower
What a day!
stimulus plan, when?
Right after the election.
Tuesday
After the market drops another 10% the Republicans will be forced to deal with Pelosi on her terms, or Trump won’t get re-elected.
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