Apple Stock's drastic Drop Ping!
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Posted on 08/21/2015 12:20:39 PM PDT by Red Badger
U.S. stocks traded about 2 percent lower on Friday, extending a recent rout, as concerns about slowing global growth continued to pressure investor sentiment. ( Tweet This )
The Dow Jones industrial average briefly fell into correction territory, losing more than 470 points as all blue chips declined. In the last five years, the index has only had four instances with closing losses of more than 400 points.
"It's an expiration day and it looks like they're to have for sale on the close maybe as much as a billion dollars," said Art Cashin, director of floor trading for UBS.
The Nasdaq Composite lost more than 3 percent, with Apple declining more than 4.5 percent and the iShares Nasdaq Biotechnology ETF (IBB) trading lower. The iPhone maker's stock fell into bear market territory.
"Right now there is a feeling of fear in the marketplace and all news is interpreted negatively and it's interpreted indiscriminately," said Tom Digenan, head of U.S. equities as UBS Global Asset Management.
The major averages approached correction territory and on track for their worst week since 2011. Earlier, the averages briefly attempted to halve losses in mid-morning trade.
"I think uncertainty about China (and) general negativity is weighing on the market. There's a lack of positive economic news to motivate buyers," said David Kelly, chief global strategist at JPMorgan Funds. He noted "there's nothing particularly negative in the U.S. economic outlook."
Oil reversed Thursday's late gains to briefly fall below $40 a barrel to $39.86 for the first time since March 2009.
Crude oil futures for October delivery settled down 87 cents, or 2.11 percent, at $40.45 a barrel on the New York Mercantile Exchange. Gold futures for December delivery settled up $6.40 at $1,159.60 an ounce.
"Earnings season has kind of wound down so the Chinese macro story takes on a bit more of importance than it should," said David Lafferty, chief market strategist at Natixis Global Asset Management.
"We've probably had a bit of a healthy transition here," he said, noting how bad news is mostly interpreted as bad news rather than good news that keeps the Fed at bay.
In addition to concerns over slowing global growth, analysts also noted some uncertainty over the timing of a rate hike.
"The Fed has created such a mixed message that people don't know what to do with their money," said JJ Kinahan, chief strategist at TD Ameritrade. "That makes (it) very difficult to figure out who are the winners and losers for the fourth quarter. People are taking money out of the market."
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded above 23.
The index briefly traded above 24, up more than 25 percent on the day and up more than 100 percent month-to-date for August, on track for its largest monthly gain since 1990.
Kinahan said investors should start paying attention now that the VIX is above 20, and that anything over 25 indicates "true fear."
Still, "we're coming off such a quiet market, sometimes there's an overreaction," he said.
The S&P 500 fell through support levels to dip below 2,000, off more than 6 percent from its 52-week high. The index is off more than 2.5 percent for the year so far. All 10 sectors of the index declined.
As of Friday morning, 28 percent of the S&P 500 was in a bear market.
"It's more of the same," said Peter Boockvar, chief market analyst at The Lindsey Group. "From a technical perspective we broke" 2,040 on the S&P 500, the lower end of the trading range.
The Russell 2000 attempted slight gains after dipping into correction territory.
Read MoreCould Russell correction signal more losses ahead?
Peter Cardillo, chief market economist at Rockwell Global Capital, noted some volatility due to options expirations.
"At one point or another you're going to see some bottom fishing," he said. "Again, the trend for now is lower."
And the beat-down goes on...
“bad news is mostly interpreted as bad news rather than good news that keeps the Fed at bay”
Sounds like ‘reality’.
It’s a Shemitah year and we are it’s final month so we can expect major market changes.
You might wish to read the Harbinger and The Mystery of the Shemitah by Messianic Rabbi Jonathan Cahn.
He’s got some U-Tube stuff online. He’s got quite a message about the judgment that America is under from the Holy One.
Freegards
LEX
WOW! I WAS JUST READING THAT STUFF LAST NIGHT!!!!...................Shemitah is gonna hit the fan!.............................
Yeah, but their dividend didn’t drop - going to deposit that check next week.
Better cash it asap...........................in gold..........................
no mention of North and South Korea bickering. Russia amassing troops on the border with Ukraine.
Other than that. Nothing to worry about
Bubble is a poppin.
Was encouraged to get in 8 months ago, but I’m not one for gambling. Maybe after it all shakes out and the market reflects reality.
Heck, it’s a LOT of things. Just go to youtube and search September 2015.
Is this the same loons that say Nibru is coming too?
DOW has been going down since May 18.......................
Thanks, Obozo.................for nuthing..................
There are all sorts of things being discussed about September of 2015. That’s the interesting thing. Different people believe different things.
Apple stocks are down 21% in 31 days.
Apparently traders are getting wise to the one-trick pony.
Flat sales of corner case watch
+
Declining sales in the ipad market
+
Declining sales in the iphone market
+
Extinction of the ipod
+
No real ground-breaking products
+
Weirdy faggot-loving board of directors
=
Run for the hills.
People can only “store” their wealth in the stock market for so long. Apple is merely a “bank” for people who believe it’s a stable company, one which could be “immune” to stock manipulation by the feds.
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How is Apple a bubble? Amazon and Google are bubbles. Apple earned $49.6 billion last quarter. It's current P/E is 12.5, a very respectable number. Amazon's are 371 and Google's is 30.5. Even Microsoft's is worse at 17.3.
Then add in Apple's $210 BILLION in Cash. . . and Apple's PE is more like 9.
So try talking sanity: There is no "Apple Bubble" to burst.
What is really happening is the end of Quantitative Easing. . .
Microsoft is down 5.67% as well. . . it’s all tech stocks, not just Apple.
Do you know that the market does not consit of you one favorite brand?
Jesus you apple people really need to get out more.
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