The Wall Street Journal reports U.S. Stocks Slide, Dragged Lower by Tech Sector
The Dow Jones Industrial Average tumbled more than 400 points Monday as anxiety over the health of technology behemoths sparked a broad retreat from the stock market.
The blue-chip index of 30 stocks lost 406 points, or 1.6%, to 25583 after posting its biggest one-week gain since March. The S&P 500 lost 1.5% and the Nasdaq Composite dropped 2.7%.
Monday’s selling began in the technology sector, then morphed into a broad rout that dragged lower everything from oil conglomerates to manufacturers to entertainment firms. It was the latest setback for the stock market, which has struggled to break out to new highs since the S&P 500 capped off its worst month in more than seven years.
Apple fell 4.4% after one of its suppliers, Lumentum, cut its earnings and revenue outlook—triggering fresh worries about demand for the company’s iPhone line.
Goldman Sachs tumbled 6.4%, wiping out nearly 100 points from the Dow industrials, as concerns grew over the bank’s interaction with a financier charged with stealing billions of dollars from the 1Malaysia Development Bhd. investment fund. General Electric dropped 5% and headed for its fourth consecutive daily decline after comments from the firm’s chief executive on CNBC failed to assuage investors’ worries about the future of the industrial conglomerate.
Apple Daily Chart
Apple is down 16%. It's barely a start.
Apple Monthly Chart
Nasdaq 100 - QQQ
The Nasdaq 100 could drop 50% and it would not be cheap. Valuations are absurd.
On a Cyclically Adjusted PE basis (CAPE) stock are ridiculously valued.
Silly Comment of the Day
The WSJ said "Investors were left scrambling for explanations."
What about absurd valuations.
Mike "Mish" Shedlock