Credit: Shutterstock photoThe weekend did nothing to soothe the market's recent frustrations about tech. Instead, the major indices picked up right where they left off last week with the NASDAQ again leading the way lower.
The index dropped by 1.39% (or about 107 points) to 7630, marking the third straight day with a loss of 1% or more. Investors haven't gotten over Facebook's unsatisfying quarterly report last Thursday, when disappointing daily active users and a miss on revenue led to its worst single day in its history with a plunge of practically 19%. It hasn't made up an inch of ground since then, dropping by less than 1% on Friday but slipping more than 2% today.
The whole tech sector was down again, including the other FANGs: Netflix (-5.7%), Amazon (-2.09%) and Alphabet (-1.51%).
The rest of the Big 3 dropped as well though not as badly given less exposure to tech. The S&P was off 0.58% to 2802.6 and the Dow was down 0.57% to 25,306.8.
Now all eyes are on Apple and its report after the bell tomorrow. If the iPhone maker can give the market a thrill, then it may be able to break the tech malaise that has gripped the market over the past three days.
"While earnings have been pretty good, Facebook and Twitter's drop last week has shaken confidence," said Jeremy in Counterstrike .
"The social media issues can all be forgotten if Apple can give us solid numbers tomorrow. If not, I fear tech can see another leg lower. Because most traders will be sitting on their hands in front of Apple, I would expect a quiet day (tomorrow)," he continued.
These rough days have forced the editors to make some moves. Momentum Trader, Stocks Under $10, Counterstrike, TAZR Trader and Technology Innovators all cashed in double-digit winners on Monday to protect profits. Meanwhile, Healthcare Innovators added three names and Black Box Trader swapped out six this week. Read the highlights below for more:
Today's Portfolio Highlights:
Healthcare Innovators: Big day in the portfolio as Kevin added three names with innovative products that can help millions of people... and make money for investors . The editor picked up Biogen (BIIB) and the small Axsome Therapeutics (AXSM), which both have Alzheimer's treatments with promise. He also added AxoGen (AXGN), a peripheral nerve regeneration & repair company that dropped 20% in two days on valuation concerns, leaving a great opportunity for the portfolio considering their leadership in an expanding market. Read the complete commentary for a lot more specifics on these names and their drugs, as well as the buy ranges for each.
Momentum Trader: Will it be a "Turnaround Tuesday for tech"? Dave doesn't know of course, but he plans to buy tomorrow as this selloff hopefully runs its course. But for today, the editor sold his remaining position in the regenerative medicine company BioLife Solutions (BLFS). The first half was sold earlier this month for a more than 33% profit and now the remainder brings an even bigger return of over 39%. Read the complete commentary for more on this move and the editor's plans looking forward.
Stocks Under $10: Not only is the market going through a rough patch, but Brian Bolan doesn't expect a huge summer box office at the movies either. Therefore, the editor felt this was a good time to secure the portfolio's profit in National Cinemedia (NCMI), which operates the largest digital in-theatre network in North America. He sold the name on Monday for a 14.3% profit in two months.
Counterstrike: This tech turmoil has Jeremy ready to pounce on some bargains. But first he needs to clear up space and raise some cash. The editor sold half of "trucking broker" Echo Logistics (ECHO) as it is finally moving higher after its quarterly report. It came close enough to his target to sell half for a 21.2% return in three months. Meanwhile, Parsley Energy (PE) has slipped to a Zacks Rank #3 (Hold) and Jeremy doesn't want to risk the profit heading into its quarterly report. With energy strong today, he sold the stock for a 12.8% profit in less than two months.
TAZR Trader: After a hot July for stocks, the summer doldrums are about to begin. And an August sell-off seems likely with highly-contentious midterm elections to look forward to. Kevin decided this was a great time to sell gene editing company Intellia Therapeutics (NTLA) to secure a 19.3% profit in less than three months. The editor also cashed in his remaining position in MasTec (MTZ) for a 7.8% return. He pulled a double-digit profit out of this position earlier this month. Read the full write up for a lot more on these moves, as well as Kevin's plans for Facebook moving forward.
Technology Innovators: The market hasn't found its footing yet after a couple disappointing FANG reports, so Brian Bolan decided to protect his profits in SailPoint Technology Holdings (SAIL) on Monday. This cyber security play was added in early March and it was sold today for a nice return of 11.3%.
Black Box Trader: The portfolio swapped out six names in this week's adjustment. We said goodbye to:
• Arch Capital Group (ACGL, +5.2%)
• Expeditors Intl (EXPD, +3.4%)
• CenterPoint Energy (CNP, +1.2%)
• Urban Outfitters (URBN)
• Antero Resources (AR)
• Tractor Supply (TSCO)
The new buys that replaced these names are:
• Archer Daniels (ADM)
• American Eagle (AEO)
• Anthem Inc. (ANTM)
• Centene Corp (CNC)
• HCA Holdings (HCA)
• Kohls Corp (KSS)
Read the Black Box Trader's Guide to learn more about this computer-driven service designed to take the emotion out of investing.
Zacks Confidential: It may be hard to believe after all the tech problems of late, but this has actually been a pretty good earnings season so far. Of course, the selloffs in the FANG names should remind us all that not everything can go up even in good times. That's what Brian Bolan wants to get across in this week's Zacks Confidential and Kevin was more than happy to give him the chance. Read his take on the season so far and get three recommendations by clicking: Earnings Season Observations.
All the Best,
Jim Giaquinto
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
