Stocks Declined Globally as Expected, FB a Non-issue
$DIA, $SPY, $QQQ, $VXX
Monday, stocks declined globally as expected, as a technology selloff sent the NAS indexes South of their lofty highs.
Government bonds pared losses, Sterling rose on a Brexit breakthrough.
Reports of a Facebook Inc. (NASDAQ:FB) data breach and Apple Inc. (NASDAQ:AAPL) efforts to develop its own screens caused a bit of stir.
Facebook fell the most in almost 4 years.
If the regulators jump on Facebook, then Google (NASDAQ:GOOG), and Amazon (NASDAQ:AMZN) the leading FAANG’s will face increasing questions about their ability to generate outsized earnings growth if the regulators are going to be beating them.
The large digital companies operating in the EU, such as Alphabet Inc.(NASDAQ:GOOGL) or Twitter Inc. (NYSE:TWTR), could face a 3% tax on their gross revenues based on where their users are located, according to a draft proposal by the European Commission.
Sterling rallied as the UK and EU reached a deal on the transition agreement for the period immediately after Brexit.
The big focus for global markets will be the first US interest rate decision under new Fed Chairman Jerome Powell.
Goldman Sachs Group Inc. (NYSE:GS) expects the median projection to rise to 4 rate hikes Wednesday, while others say there will be no change following a round of mediocre data and policy makers’ stated intentions to move gradually.
Monday, the major US stock market indexes finished at: DJIA -335.60 at 24610.91, NAS Comp -137.74 at 7344.24, S&P 500 -39.09 at 2712.92
Volume: Trade on the NYSE came in at:863-M/shares exchanged
- NAS Comp +6.4% YTD
- S&P 500 +1.5% YTD
- DJIA -0.4% YTD
- Russell 2000 +2.3% YTD
HeffX-LTN’s Market Indexes Technical Analysis