The FAANGs Drove the S&P 500 (SPY) Due South Monday
$DIA, $SPY, $QQQ, $RUTX, $VXX
FAANG Group: Apple, Facebook Inc, Amazon.com Inc, Netflix Inc and Alphabet Inc shed between 3% and 4.8% on the day.
Monday, the Dow Jones Industrial Average shed more than 500 pointsm as a slump in Apple shares hammered the tech sector, with conflicting signals over the state of play between the United States and China on their trade dispute is keeping participants on edge.
Shares of Apple (NASDAQ:AAPL) fell 3.8% after the Wall Street Journal reported the company had cut production orders in recent weeks for all three iPhone models launched in September.
The iPhone maker’s stock, which has played a major role in powering a decade-long Bull run for equities, is down nearly 20% from a record high in October following a disappointing holiday-quarter sales forecast and weak outlook from several of its suppliers.
Apple was the biggest drag on the technology sector, which fell 3.3% and was the top loser among the 11 major S&P sectors trading in the Red.
Consumer discretionary stocks fell 2.1% and communication services fell 2.7%.
“Without the FAANG leadership, including Apple, the market is going to struggle,” the managing director and chief market strategist at Cantor Fitzgerald in New York said.
Shares of Apple suppliers were also hit, with Lumentum Holdings Inc, Universal Display Corp, Cirrus Logic Inc and Skyworks Solutions Inc down between 2.6% and 6%.
The Philadelphia SE Semiconductor index, which also includes some Apple suppliers, dropped 2.6%, extending losses from the previous session after an underwhelming forecast from Nvidia Corp weighed on the sector.
There been a loss of trust in managements at Apple and Nvidia, as both over-promised and under-delivered. Rarely do we see these kind of moves in a Holiday week. New leadership is setting up.
Monday, the US major stock market indexes came in at: DJIA -395.78 at 25016.44, NAS Comp -219.40 at 7028.68, S&P 500 -45.54 at 2690.87
Volume: Trade on the NYSE came in at 909-M/shares exchanged
- NAS Comp +1.8% YTD
- DJIA +1.2% YTD
- S&P 500 +0.6% YTD
- Russell 2000 -2.5% YTD
HeffX-LTN US Major Stock Market Indexes Technical Analysis