Tech's Tumble Can't Keep the Dow Down

Michael Haddad

Call It a Comeback. After spending much of the day in the red, the Dow battled back to finish in positive territory on Monday. The Nasdaq, however, continued to slide as investors lightened up on tech stocks. Square tumbled after a bearish analyst expressed skepticism over the company’s latest move. In today’s After the Bell, we…

…wonder if this is it for tech: …explain why Arconic jumped to the top of the S&P 500; …and highlight Salesforce.com’s tumbled to the bottom of the index. Tech Gets Wrecked

A bad day turned out to be not so bleak—unless you were a tech stock.

The S&P 500 finished little changed, though down, at 2884.43, while the Dow Jones Industrial Average rose 39.73 points, or 0.2%, to 26,486.78. The Nasdaq Composite tumbled 0.7% to 7735.95.

The Dow was off as much as 223.96 points, or 0.8% earlier in the day, but staged a comeback to end its two-day losing streak. But there’s no hiding the fact that tech was very, very weak. The S&P 500 Information Technology index fell 1.2%, as companies like Autodesk (ADSK) and Cadence Design System (CDNS) fell more than 3%.

The question becomes whether the overall market can handle weakness in tech. Right now, you’re seeing the same combination of defensiveness and plays for higher rates keeping the overall market roughly flat, as we discussed last week. But it would sure be nice to see tech and the Nasdaq make a comeback.

Wall Street is now in the longest bull market in history. How did it get there? WSJ’s Ken Brown walks us through the record-breaking bull run. Photo illustration: Heather Seidel/The Wall Street Journal

Jonathan Krinsky, chief market technician at Bay Crest Partners, thinks

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