Lousy day for NASDAQ as big techs drop ahead of key US economic data
InvestingOnline.com
31/07/2018, 01:34Wall Street closed down on the first day of the week as investors are on a wait-and-see mode ahead of a week full of critical data. Technological companies dragged the Nasdaq Composite down on the day.
Shares of Twitter lost 8%, and Facebook dropped 2.2% on Monday, while Netflix collapsed 5.7%, Amazon declined 2.1%, and Google-parent Alphabet fell 1.8%.
Investors are suggesting that sentiment market is the reason behind the declines following weaker than expected earnings from Facebook and the data scandal that the company faced earlier this year.
The S&P 500 closed Monday 0.58% or 16.22 points down to 2,802.60. Analysts at i10Research affirmed that “the bias in the S&P 500 will remain technically bullish above support zone at 2789-2801, but there has not been broad strength behind this latest move higher.”
The Dow Jones Industrial Average finished the day 144.23 points or 0.57% negative at 25,306.83. The DJIA rejected the 25,600 area twice last week after a rally from the 25,00 area. The index closed down for the second day.
Technically, there is a moving average cross that could be considered as a bullish technical event. The 20-day moving average broke above the 50-day MA. Now, moving averages are aligned to the upside.
DJIA daily chart July 30
Finally, the Nasdaq Composite suffered 107.41 points or 1.39% losses on Monday to end the day at 1,630.
“The Nasdaq100 immediately pulled back after hitting new highs,” i10Research says. “Its bias will remain bullish while above 7291, but a drop below this level would negate the bias and invite additional decline.”
Most sectors finished Monday down for the day. Only three industries posted gains with the telecommunication services closed 0.73% positive; while real estate added 0.44% and the energy sector ended 0.42% up the day.
On the losers, worse performers were information technology, which lost 1.92% in the day; Industrial posted a 1.42% drop; while Consumer discretionary finished 0.84% down on the day.
