Posted on 11/20/2018 7:33:09 AM PST by Red Badger
Stocks around the world tumbled Tuesday, putting major U.S. indexes at risk of closing below their October lows and wiping out yearly gains.
What started as a technology company selloff bled into other corners of the market, as investors dumped shares of everything from retailers to oil-and-gas companies in favor of relatively safe assets such as bonds and reliable dividend payers like utility companies.
The result: Some traders who stepped in to scoop up shares in late October, hoping for a quick rebound, are now in danger of losing those potential profits and more. That puts the stock market in a tenuous position, several said.
“The buy-the-dippers are getting concerned. Now we’re going to see how much of the rebound was real buyers versus renters that were just trying to buy the dip,” said Justin Wiggs, managing director in equity trading at Stifel Nicolaus. According to his calculations, as of this morning about 16% of S&P 500 companies are now below their October lows.
In recent trading, the S&P 500 dropped 1.9%, the Dow Jones Industrial Average fell 2.1%, or 546 points, while the Nasdaq Composite declined 2.4%, putting all three on track to close in the red for the year. The Nasdaq closed Monday below its Oct. 29 low, while the S&P 500 and Dow industrials slipped Tuesday intraday below their October troughs.
The Nasdaq slumped 3% Monday, closing near a seven-month low, with tech-giant Alphabet slipping into bear-market territory. On Tuesday, while the tech sector declined, it was consumer companies and energy firms leading indexes lower.
Oil-and-gas companies tumbled as the price of U.S.-traded crude oil fell 2%. Retailers, recently on the rebound, sunk after Target Corp. said it faced higher costs on supply chain and wages for workers. Shares fell 7.6%.
(Excerpt) Read more at wsj.com ...
The fed is responsible.
Ghosn’s arrest isn’t helping any.
It seems like there’s more going on in the markets than just some “tech pressure.”
Since Democrats were projected to seize power in the House, the market has tanked.
Voter fraud must be STOPPED.
FEAR OF DEMOCRATS TAKING THEIR MONEY..................
The fed is responsible.
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President Trump has mentioned the Fed numerous times lately. He has been critical of their policies. He’s smart in doing so. Good CYA for if the economy starts slowing down.
Since Kalifornia has driven most other business out of state, a fall in Tech should make Newsom’s sphincter contract.
Nice to see oil under 55. My gas guzzlers are smiling
The single biggest factor is whether these companies are making any money, and/or whether they are expected to make money in the future. I can't speak for Amazon and Google (Alphabet), but Facebook is worth almost $400 billion on paper despite the fact that it has never paid a penny in dividends.
Giving up 2018 gains is less important than giving up value gained over the past 12 months, which none of the major indexes have so far.
The rest of the year 2018 will be to see whether or not current losses have, or are reaching a bottom, or if the entire last 12 months added value will be lost also. That will depend on how many investors in the next 30+ days will see buying opportunities in any of the recently obtained lows.
Facebook only has value so long as advertisers are convinced that it can deliver eyeballs, and so long as it can continue to steal data from their users to sell to the highest bidder.
Driving away half of their customers with political censorship was not smart.
Excuse me, but aren’t the big losers, the tech companies (eg Facebook, Amazon, Apple, Netflix, and Google) major backers of Democrats? No tears from me.
I have a sneaking suspicion that Facebook is trying to engineer a "soft landing" for itself -- i.e., they know their business is built on a foundation of sand, and they have to figure out a way to quietly scale down expectations without having the obvious phony numbers exposed.
I often see reports that Facebook claims to have 2 billion members. I can't imagine advertisers are dumb enough to believe that. My six Facebook personalities all agree that the 2 billion figure is totally B.S. :-P
Yep! Schadenfreude feels good!..................
If it has 2 billion members at least a billion of them are fake.
Advertisers have an excellent case to scream fraud.
When you’re a rich entity like Amazon and Facebook and your “friends” are Democrats in Congress you might want to reconsider the friendship if you want to save your fortunes!
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