Alphabet Inc. (NASDAQ:GOOG) faces renewed antitrust pressure
The Nasdaq Composite, the most tech-heavy of the major US stock indexes, slid on Monday as shares of Alphabet tumbled as much as 1% following the announcement of new antitrust investigation into Google’s ad business.
A coalition of state attorneys general from 49 states and Washington, D.C. announced the probe on Monday and said it will focus on whether Google has used anti-competitive practices in its ads business.
The announcement is the most recent advancement of antitrust scrutiny on large US tech companies. Shares of Facebook sunk last week after New York Attorney General Letitia James said her office was coordinating a multistate antitrust probe into the social media company.
On the macro front, Oil jumped to a six-week high after Saudi Arabia’s new Energy Minister hinted OPEC and its allies might continue to lower output this year.
Here’s a look at the major indexes as of the 4 p.m. close on Monday:
- The S&P 500 fell 0.01%, to 2,978.43.
- The Dow Jones Industrial Average climbed 0.14%, to 26,835.51.
- The Nasdaq Composite slid 0.19%, to 8,087.44.
A jump in Treasury yields led a rally in bank stocks. Shares of JPMorgan rose 2.5%, Citigroup gained 4.3%, and Bank of America climbed 3.3%.
WeWork, which is expected to conduct one of the most highly-anticipated IPOs of the year, could cut its valuation below $US20 billion, according a report from the Wall Street Journal. The company might also delay its IPO, the report found. WeWork’s valuation has come under increased scrutiny in recent weeks due to questions regarding the company’s ability to generate a profit.
Shares of AT&T surged as much as 5% on Monday after activist hedge fund Elliott Management announced a $US3.2 billion stake in the telecommunications company. The firm said AT&T has a” compelling value-creation opportunity,” and that it predicts shares could rise past $US60 by the end of 2021. That would be a roughly 50% increase over current levels.
These were the biggest gainers in the Nasdaq 100 on Monday:
- Walgreens Boots Alliance: 5.8%
- Mylan: 3.3%
And the largest decliners:
- IDEXX Laboratories: 7.4%
- MercadoLibre: 4.5%
- Regeneron Pharmaceuticals: 4.5%
Within the S&P 500, gains in energy and financial stocks were offset by losses in real estate, healthcare, and technology.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1,275.28.
The projected lower bound is: 1,138.68.
The projected closing price is: 1,206.98.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 83.7935. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 22 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 56.26. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 28 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 110.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed down -0.520 at 1,204.410. Volume was 1% below average (neutral) and Bollinger Bands were 49% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,185.92 1,167.44 1,132.96
Volatility: 23 37 34
Volume: 1,182,697 1,402,012 1,551,004
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
ALPHABET INC C is currently 6.3% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of GOOG.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on GOOG.O and have had this outlook for the last 0 periods.
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