The US stocks continue to retreat with the NASDAQ index leading the way. The NASDAQ index is leading the way this year with a oversize gain of 34.52%. That comes after a -33.1% decline last year.
NASDAQ index is pushing lower
The NASDAQ index is currently down -243 points or -1.68% at 14065.
Technically there are some negative technicals that sellers can lean against (build a bearish/corrective storyline).
- The high price from last week reached 14423.22. That fell just short of the 2023 high of 14446.55.
- The high close for the year was reached back in July at 14358.02. Although the price moved above that level last week, it could not close above and make a new high for 2023
- There is a gap down to 13802 up to 14003.14 (see yellow area on the chart above). Markets like to fill gaps and that certainly is sticking out.
Fundamentally, the factory orders data came in weaker than expectations (and so did durable goods orders). One can argue that that may lead to a softer fed, but also softer earnings as the economy does indeed slow and does not have the soft landing but more of a bumpy landing. We are seeing housing data come in weaker which may also be a negative for consumer spending as people feel less wealthy.
The magnificent 7 are getting hit:
- Nvidia is down -3.44%
- Meta is down -2.54%
- Apple is down -1.78%
- Alphabet is down -2.76%
- Microsoft is a down -2.99%
- Amazon is down -2.52%
- Tesla is down -1.72%
Looking at the other indices:
- Dow industrial average is down -178 points or -0.49% at 36069.09
- S&P index is down -45.50 points or -0.99% at 4549.00
Russell 2000 is bucking the trend with a gain of 6.22 points or 0.33% at 1868.75 as traders rotate out of NASDAQ stocks in 2023 is up 6.03% in 2023. The Dow industrial average is up 8.84% while the S&P index is up 18.43%.