Stock market: Wall Street still penalized by the decline in tech

(Photo: Getty Images)

MARKET REVIEW. The New York Stock Exchange ended in the red Thursday, the day after a meeting of the US Federal Reserve and after another difficult session for the technology sector, in the wake of mixed US indicators.

The clues

In Toronto, the index S&P/TSX ended the day with a decline of 48 points, or 0.3%, to 16,246 points.

In New York, the index S&P 500 yielded 28 points, or 0.84%, to 3,357 points.

The Dow Jones lost 130 points, or 0.47%, to 27,901 points.

The Nasdaq fell 140 points, or 1.27%, to 10,910 points.

The context

The Nasdaq, which brings together technology stocks and which had suffered heavy losses last week, was weighed down in particular by Amazon (-2,25%), Apple (-1.60%) and above all Tesla (-4,15%).

On Wednesday, the New York Stock Exchange ended without direction, with the Dow Jones Industrial Average gaining 0.13% and the Nasdaq losing 1.25%.

“The correction is not over,” said Maris Ogg of Tower Bridge Advisors, who finds the correction “rather healthy”.

“The stocks that have grown the most are those that have fallen the most,” she added, referring to technology stocks, “where no one can be surprised that there may be a correction”.

Investors were also digesting the decisions of the Federal Reserve (Fed) and mixed indicators for the US economy.

Despite the virtual promise to keep rates low until the end of 2023, Fed President Jerome Powell also stressed Wednesday the uncertainties of the recovery, which depends “closely on the evolution of the virus”.

The boss of the Fed also once again insisted on the importance of budgetary aid to revive the economy.

“I believe investors were disappointed that the Fed did not increase the maturity period of the assets it purchases,” which would be an additional effort from the Central Bank to inject liquidity and support the recovery , underlined Karl Haeling of LBBW.

“But it’s a short-term reaction,” he said. “Overall, the Fed’s monetary policy is very favorable to the economy,” said the analyst.

Mixed indicators Thursday did not boost investor enthusiasm.

Weekly jobless claims fell in the United States last week, but remained above expectations, according to figures released Thursday by the Labor Department.

Housing starts were also disappointing, falling more than expected in August (-5.1%).


Wall Street opened higher on Tuesday (15/9), supported by hopes of stimulus from the Fed


Source: Reuters | Editor: Herlina Kartika Dewi

KONTAN.CO.ID – NEW YORK. Wall Street opened higher in early trading Tuesday (15/9) driven by technology shares as positive US factory data sparked optimism for an economic rebound. On the other hand, investors are looking for more stimulus from the Fed when the central bank starts its meeting today.

Quoting Reuters, Tuesday (9/15), at 9:56 a.m. local time, the Dow Jones Industrial Average rose 125.30 points, or 0.45%, to 28,118.63, the S&P 500 rose 30.93 points, or 0.91 %, to the level of 3,414.47 and the Nasdaq Composite rose 168.81 points, or 1.53% to the level of 11,225.46.

The tech index jumped 1.6% after recovering from a sell-off earlier this month that knocked the S&P 500 and Nasdaq off all-time highs.

Apple Inc shares rose 2.5% ahead of the virtual product launch, which is expected to unveil an updated watch and iPad.

Also Read: Wall Street: Corona Vaccines and Potential IPOs Support The Dow Jones, S&P, Nasdaq’s Advancement

Some experts said in the first policy meeting since Fed Governor Jerome Powell announced a more accommodative stance on inflation, the central bank could shift US Treasury purchases into long-term debt to keep long-term yields low.

“The market is getting a pull from expectations the Fed will continue to keep interest rates low historically,” said Sam Stovall, chief investment strategist at CFRA in New York.

“It makes the intrinsic value model show very high returns for the stock market in the coming year.”

Expectations from the Fed have risen amid a deadlock in talks for fiscal aid and economic reports showing an uneven recovery from the recession fueled by the coronavirus.

Data on Tuesday showed US factory production increased strongly in August. Separately, US import prices increased more than expected for the same month, supporting the view that inflationary pressures are on the rise.

Earlier data for the day showed China’s industrial production accelerated the most in eight months in August.

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Goldman Sachs and Deutsche Bank say US selloff may be near the end

The recent selloff in the US stock market could be coming to an end, if history is any reference, according to strategists at Goldman Sachs Group Inc. and Deutsche Bank AG.

Its magnitude has coincided with a “typical” sale of the S&P 500 since the financial crisis, albeit at a faster pace, a Goldman team, led by David Kostin, wrote in a comment Friday. And the positioning of options – the core of the weakness – has normalized, his colleagues at Deutsche, including Srineel Jalagani, noted the same day.

“Despite the strong selloff last week, we remain optimistic about the trajectory of the US stock market in the coming months“wrote Goldman analysts.” Since the financial crisis, the typical S&P 500 pullback of 5% or more has lasted 20 trading days and has been 7% from peak to low, matching the magnitude of the pullback. latest, if not speed. “

A Revaluation of historically high equity valuations and volatility in the options markets has caused the S&P 500 to fall approximately 7% from its record close on Sept. 2, although it maintains an increase of almost 50% compared to the minimum in March. The Nasdaq 100 is down 11%, after investors questioned whether the rally of the high-tech indicator could be excessive.

For its part, the Deutsche team focused on the impact on the options market, using a measure that analyzes the number of contracts that are bearish relative to bullish ones. The ratio fell to the bottom of a 10-year range, indicating an extreme level of positive outlook, the team said.

“Historically, put-call corrections have impacted the market acutely, but the impact was short-lived,” the strategists wrote.

However, both teams noted that the US elections were a major source of uncertainty for future markets.

“Investors have yet to deal with the next macro event of the US presidential elections,” warned Deutsche strategists. “With a probably unprecedented volume of mail-in votes, the outlook for post-Election Day volatility remains high.”


Stock market: Wall Street benefits from the rebound in tech

(Photo: Getty Images)

MARKET REVIEW. The New York Stock Exchange ended sharply higher Monday, benefiting from the rebound in the technology sector, barely last week, and a series of buybacks.

The clues

The index S&P/TSX of the Toronto Stock Exchange ended the day with a gain of 137 points, or 0.85%, to 16,360 points.

In New York, the index S&P 500 advanced 42 points, or 1.27%, to 3,383 points.

The Dow Jones climbed 327 points, or 1.18%, to 27,993 points.

The Nasdaq rose 203 points, or 1.87%, to 11,056 points.

The context

Tested by the fall of the big names in tech, the Nasdaq had suffered a weekly drop of 4% last week, its worst weekly performance since March.

“Tech was flattened last week, but what a lot of clients told me is that they thought the industry was too high and were hoping for some kind of pullback,” says Christopher Low of FHN Financial.

Apple, which had a black week on Wall Street but is set to present new products and services Tuesday from its California headquarters, gained 3.00% on Monday.

Tesla, which had recorded its biggest drop in the stock market last week, climbed 12.58%.

The many developments of the weekend in terms of mergers and acquisitions have also benefited several big names in New York.

“When companies are comfortable buying other companies, it suggests that not everyone thinks the stock market is overvalued,” Low notes.

The Californian semiconductor maker Nvidia confirmed on Sunday the purchase for some 40 billion dollars of the designer of chips for smartphones Arm Holdings from the Japanese group Softbank. Nvidia’s share took 5.82%.

For its part, the Californian laboratory Gilead rose 2.22% after Sunday’s announcement of its upcoming acquisition for around $ 21 billion of US biotech Immunomedics, which markets a drug used to treat breast cancer.

L’action Immunomedics soared by almost 100%.

For its part, the IT group Oracle confirmed to have made a “proposal” about the application of light videos TikTok. Suspended at the start of the session, its share rose 4.32%.

Microsoft, whose plan to buy out the American activities of the Chinese social network was rejected on Sunday, despite everything rose 0.68%.

Owned by Chinese group ByteDance, the popular app is at the heart of a diplomatic battle between Beijing and Washington, with US President Donald Trump accusing TikTok of spying for the benefit of China without proof and threatening it with a ban in the United States.

On the bond market, the 10-year rate on US debt rose around 4:25 p.m. to 0.6756% against 0.6658% on Friday evening.


Wall Street ended corrected, reselling engulfed technology stocks

ILUSTRASI. FILE PHOTO: A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 18, 2020. REUTERS/Lucas Jackson/File Photo

Source: Reuters | Editor: Yudho Winarto |

KONTAN.CO.ID – NEW YORK. Wall Street closed down after going through choppy trading on Thursday (10/9). This was triggered by the resumption of selling in technology heavyweight stocks and the increase in jobless claims, which reminded that future economic recovery is still difficult.

Launch Reuters, the Dow Jones Industrial Average fell 405.89 points or 1.45% to 27,534.58, the S&P 500 lost 59.77 points or 1.76% to 3,339.19, and the Nasdaq Composite fell 221.97 points or 1.99% to 10,919.59.

Shares such as Apple Inc, Microsoft Corp and all fell at least 2.8%.

Also Read: Wall Street: Tech Stocks Selling Down On The Dow Jones, S&P, Nasdaq

Tesla Inc shares rose 1.4%, initially helping to limit Nasdaq’s losses before the tech-heavy index’s losses widened.

The NYSE FANG + TM index, which covers core FAANG shares, fell 1.8%, and all 11 S&P 500 sectors traded lower.

The S&P tech index was one of the weakest performers on Thursday afternoon, stumbling 2.28%. Despite the recent setbacks, the tech index is up about 24% in 2020, well outperforming the benchmark S&P 500’s 3.3% increase in the same period.

Several very large and bullish tech-related options positions at Facebook Inc, Adobe Inc and Netflix Inc were partially canceled on Thursday, in line with more cautious sentiment towards tech names, according to Christopher Murphy, co-head of derivatives strategy at Susquehanna Financial Group.

Many market participants saw the sell-off as an initial bout of turbulence of a deeper slide.

Also Read: Wall Street strengthened, the stock market is still in a consolidation trend

Earlier, Wall Street was able to rebound Wednesday from their biggest three-day decline since March, as investors returned to technology-focused stocks deemed protected from the current economic downturn.

Meanwhile, the number of Americans filing new claims for unemployment benefits remained high last week, Labor Department data showed, as layoffs and leave took place across the industry.

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Wall Street collapsed, the Dow Jones fell 600 points dragged down by technology stocks

ILUSTRASI. FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri/File Photo

Reporter: Yudho Winarto | | Editor: Yudho Winarto |

KONTAN.CO.ID – NEW YORK. Wall Street closed falling on trading Tuesday (8/9), dragged down by technology shares that put the Nasdaq Composite in the red zone. As well as the S&P 500’s three-day losing streak in months.

Launch Reuters, The Nasdaq Composite index was down 4.1% at 10,847.69. Tuesday’s decline put the Nasdaq down 10% over the past three days. This marks the Nasdaq’s worst three-day span since August.

The Dow Jones Industrial Average fell 632.42 points, or 2.3%, to 27,500.89. The S&P 500 index fell 2.8% to 3,331.84. The broader market index is down nearly 7% over the past three days, the worst three-day span since June.

Also Read: Wall Street: Dow Jones, S&P and Nasdaq Hit by Trump’s Statement

Just so you know, Tesla shares plunged 21.1% – the biggest one-day decline – after the S&P Dow Jones Index failed to add surging and speculative stocks to the S&P 500 after Friday’s bell.

Apple shares fell 6.7% to lead the tech sector decline. Over the past three sessions, the Dow component has fallen more than 14%. According to Bespoke Investment Group, it was the worst three-day decline in stocks since October 2008.

Shares of Facebook and Amazon both fell more than 4%. Microsoft dropped 6.7%. Netflix closed 1.8% lower and Alphabet lost 3.6%.

Zoom Video shares are down 5.1%. The S&P 500 technology sector fell 4.6% and closed Tuesday session by more than 11% below its all-time high on September 2.

“The high valuations in mega-cap stocks are above historical levels,” said Bruce Bittles, chief investment strategist at Baird.

“Technical indicators – high margin debt, fully invested mutual funds, CBOE options data showing recorded call volume, Wall Street letter writers on bullish levels – point to excessive optimism in the market which often suggests a possible consolidation / correction phase.”

Shares of Softbank were down 7% on Monday in Japan as they were identified as a large options buyer betting their billions on soaring tech stocks. Tech trading could lose some of its power if Softbank were to curb that bet

Also Read: Wall Street collapsed, technology stocks faced a sell-off

Semiconductor stocks are under pressure amid US-China trade tensions. Shares of Nvidia and Micron fell 5.6% and 3.2%, respectively.

China accused the US of being “oppressive” when it launched a global data security initiative on Tuesday. It happened as Washington continued to pressure China’s biggest tech companies and lobbied countries around the world to block them.

President Donald Trump has also recently accepted the idea of ​​”secession” from China, or has refused to do business with the country.

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Ambyar, The World’s Richest Person Loses Rp. 642 T in a Week

Jakarta, CNBC Indonesia – The world’s richest people suffer losses of up to US $ 44 billion or Rp 649 trillion in a week. This is the impact of the drop in the price of shares of companies on Wall Street.

The biggest loss was recorded by the world’s richest man Jeff Bezos. The Amazon CEO stated that his wealth decreased by up to US $ 9 billion or the equivalent of Rp. 132 trillion, Bloomberg News reported and quoted by CNBC Indonesia, Monday (7/9/2020).

Tesla CEO Elon Musk suffered the next deepest decline in wealth. His wealth evaporated by US $ 8.5 billion due to the drop in share price of this electric car manufacturer in three consecutive days.

Facebook’s Mark Zuckerberg lost $ 4.2 billion, while Microsoft Founder Bill Gates’ fortune fell by $ 2.9 billion. Others on the list include Steve Ballmer who lost US $ 4.8 billion, Larry Page lost US $ 3.6 billion, Sergey Brin lost US $ 3.5 billion, MacKenzie Scott lost US $ 3.2 billion, Larry Ellison lost US $ 2.4 billion, and Jack Ma lost US $ 1.6 billion.

The richest person in the technology sector enjoyed an abundant addition of wealth during the Covid-19 pandemic even though world economic projections were gloomy. Mark Zuckerberg is enjoying an increase in wealth of up to US $ 4 billion a day. Jeff Bezos became the first richest man in the world with prices touching over US $ 200 billion.

Despite suffering heavy losses in trading last week, incredibly the world’s richest people have collectively added $ 830 billion to their fortunes this year, according to the Bloomberg Billionaire Index.

[Gambas:Video CNBC]



September Curse Real, Wall Street ‘Fires’

Jakarta, CNBC Indonesia – The United States (US) stock exchange experienced a sharp decline on Thursday (3/9/2020). This happened after a record at the close of last August.

The Nasdaq technology-rich index fell 5% or ended at 11,458.10 positions. This follows yesterday’s sell-off in technology stocks.

The Dow Jones slumped 2.8% to 28,292.73. Meanwhile the S&P 500 fell 3.5% to 3,455.06.

“The market is overbought and is about to retreat,” said analysts at Quincy Krosby, chief US market strategist at Prudential Financial.

According to him, historically September was a bad month for the stock market.

Big tech companies are on the decline. Apple shares slumped 8%, Alphabet 5% and Tesla 9%.

The sell-off came after mixed US economic data was reported. The US noted a slowdown in the service sector in August.

Not to mention the bigger-than-expected jobless claims and this year’s record layoffs. The US also posted a large trade deficit, which was unexpected in July.

[Gambas:Video CNBC]

(Head / head)


Financial market shows a warning sign – CNN

(CNN Business) –– Throughout the summer, signs grew that the meteoric rise in the stock market was unsustainable.

Optimistic investors pushed Tesla’s market value about the same as JPMorgan Chase and Citigroup combined. Apple’s $ 2 trillion market capitalization recently surpassed that of the 2,000 companies that make up the small-cap Russell 2000. And the S&P 500’s futures market valuation rose to levels never seen since the dot-com bubble.

Euphoria was clearly gripping the financial markets.

Tesla makes its shares available to the public 1:25

The runaway Wall Street train finally derailed this Thursday, when the Dow index plummeted 1,026 points, or 3.5%. It closed 808 points down, or 2.8%.

The Nasdaq fell as much as 5.8% as pandemic winners like Apple, Zoom and Peloton plunged. Even the mighty Amazon is down 5%, though it is still up at an incredible 82% on the year.

Now, the question is whether the market recovery will get back on track quickly or if this is the beginning of a major pullback in the stock market.

One warning sign that suggests there could be more turbulence on the way is the unusual movements in the VIX volatility indicator, closely watched.

Typically, the VIX is muted when US stocks are at record highs. But some market analysts have been concerned in recent days that the VIX continued to climb, even as the S&P 500 hit new highs.

In fact, the VIX peaked at an all-time high for the S&P 500, according to Bespoke Investment Group and Goldman Sachs. The previous high was set in March 2000 during the dotcom bubble.

“It’s a major red flag,” Daryl Jones, research director at Hedgeye Risk Management, told CNN Business. «The market is at a very risky point. The danger of a market crash increases. ‘

When US stocks rise and the VIX remains low (and often low), this is usually a green light for investors.

You want to chase that. But a higher stock market due to higher volatility is telling you that the risk increases, ”Jones explained.

“Worrying sign”

The VIX is only at 33, well below the closing record of 86.69 set on March 16 when the pandemic threw the world into chaos.

Back then, it made sense for the VIX to go up. The S&P 500 had just suffered its worst day since 1987. The Dow lost an impressive 2,997 points, or 12.9%. Selling was so extreme that trading was halted on the New York Stock Exchange for 15 minutes that day.

Why are savers leaving their money in the bank? 1:12

But the financial markets today are in a completely different world, one that would normally involve a much lower VIX. The S&P 500 ended at an all-time high on Wednesday, a whopping 60% from its March 23 low. The Dow even closed above 29,000 for the first time since February. The CNN Business Fear & Greed Market Sentiment Index he was solidly in “extreme ambition” mode.

“This is a worrying sign,” Jim Bianco, president of Bianco Research, said of the high level of the VIX.

Bianco noted that volatility tends to drop when stocks rise because investors feel less of a need to buy the VIX as insurance against a fall. But that pattern has been broken.

“When prices go up in a way that worries people, the market is excessive and there is volatility and rising prices, that is typically unsustainable and a correction is made,” Bianco said.

Fed and vaccine hope support five-month hike

Wall Street’s epic rally has been fueled by incredible levels of emergency aid from the Federal Reserve, which cut interest rates to zero, bought trillions of dollars in bonds, and promised to stay on top of the situation for as long as necessary.

The Fed leaves the interest rate at 0% 1:07

The Fed bailout is at the top of record levels of aid from the federal government. Investors have also been optimistic that a vaccine will be widely available before long, although Dr. Anthony Fauci, the nation’s leading infectious disease expert, He dimmed hopes a bit on CNN Thursday.

The most surprising part of the rise in the VIX is that it opposes Fed money that is designed to keep volatility in check.

Jones, the Hedgeye executive, compared the Fed’s efforts to reduce volatility to shoving a ball under water.

“Ultimately, the underwater ball floats up and jumps higher,” he said.

But Randy Frederick, vice president of trading and derivatives at Charles Schwab, said concerns about the VIX surge alongside the stock market are “a bit overblown.”

“It’s more of a caution flag than a panic button,” said Frederick.

Pre-election fear

First, he pointed to the fact that the VIX does not usually anticipate market downturns as much as it reacts to them. Second, Frederick argued that there are very legitimate reasons for investors to be nervous right now: the impending election and the pandemic.

Possible Covid-19 Treatment Boosts Wall Street 1:03

“We have a very unusual situation here,” he said. “We are facing a highly contested election in just 60 days and we still do not know when we will have a vaccine to get out of this mess.”

Goldman Sachs strategists noted in a research note for clients Thursday that VIX futures contracts in early November soared, probably due to “investor fears about high volatility surrounding the US elections.” In particular, the Wall Street bank said investors are likely concerned that the election results “will take longer than normal to process.”

Paul Hickey, co-founder of Bespoke Investment Research, said that while there are explanations as to why the VIX is so high, that doesn’t mean it should be minimized.

“The market has been on a great streak,” Hickey told CNN Business in an email, “so when we hit a bump in the road, the reaction is more likely to be more exaggerated than if we come in slowly.”

Betting against this rally has been reckless, if not dangerous. But it won’t go up forever.


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