Many of the tech high-fliers were spanked last week. Today, the FANG stocks all fell down along with AAPL and MSFT. Until their earnings reports in mid to late-July, there is no suggestion that we will see new records…so it looks like a volatile lower trading range for this group for the next several weeks.
Today, the DOW dropped 36, the S&P 500 lost 2, and the NASDAQ fell 32 points.
There are a number of new releases this week that will show slowdowns as well: May P.P.I.; Wednesday – May C.P.I. and May retail sales; Thursday – May import prices, May industrial production and capacity utilization, weekly jobless claims; Friday – May housing starts and the preliminary University of Michigan Consumer Sentiment Survey.
The dollar strengthened today as the British Pound took a dive on the election results from last week. The Euro stayed steady at 1.1204 and the Japanese yen lost a fraction to 109.89 to the dollar. Gold naturally fell on this and ended down to $1,268.
The laggards of this year gained for the second day in a row: F, NKE, IBM, XOM and GE. General Electric was in the 40’s over 15 years ago and is now in the 20’s and it is going up because the C.E.O. is leaving.
Interestingly enough, the only 2 high-fliers that ended higher today are NVDA and TSLA, both of which were the only ones that ended higher for last week despite Friday’s huge technology decline. How about FDX at a new all-time high?
Donald M. Selkin
These are excerpts from Don Selkin’s Daily Market Notes, abbreviated and updated with permission from the author. Don Selkin is the Chief Market Strategist at Newbridge Securities Corporation, member FINRA/SIPC and provides the Fair Value analysis for CNBC each morning. The commentary provided in this Market Letter is intended to provide timely market analysis and should not be considered a research report. This Market Letter may contain, and is limited to: Discussions of broad based indices; Commentaries on economic, political or market conditions; Technical analyses concerning the demand and supply for a sector, index or industry based in trading volume and price; Statistical summaries of multiple companies’ financial data, including listings of current ratings; and, Recommendations regarding increasing or decreasing holdings in particular industries or securities. This Market Letter does not make a financial or investment recommendation or otherwise promotes a product or service of the firm. This Market Letter contains only news, facts, and commentary on information previously reported from a news source believed to be accurate and reliable by the author. These news sources include the following: Bloomberg Financial, Reuters, and the Associated Press.