Dow Jones Surrenders 394-Point Gain; FANG Stocks Thrashed

A 394-point intraday gain for the Dow Jones was looking good for the bulls early Friday after New York Fed President John Williams made some market-friendly comments. But it didn’t take long for the bears to regain control in another volatile session.




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FANG stocks like Netflix (NFLX), Amazon.com (AMZN) and Facebook (FB) endured another session of heavy selling as the Nasdaq composite fell 3%. It suffered a weekly decline of 8.4%.

The Dow Jones lost 1.8% and the S&P 500 gave back 2.1%. Volume was heavy due to the simultaneous expiration of index and stock futures and options. Known as quadruple witching, it only occurs four times a year.

The Dow Jones fell 6.9% for the week, its worst weekly decline since the financial crisis in 2008. The S&P 500 notched a weekly decline of 7%.

In a CNBC interview, Williams said the Federal Reserve could reassess its interest rate policy in the new year if the economy slows more than expected. Meanwhile, the prospects of a government shutdown weighed on financial markets as President Donald Trump battled with Democrats over a spending bill. Trump said he would not sign a temporary government resolution without funding for a U.S.-Mexico border wall.

Amazon is now 32% off its recent high, while Netflix and Facebook have pulled back just over 40% from their recent highs.

Dow Jones Winners

A few stocks in the Dow Jones industrials bucked the trend. Nike (NKE) was the outright winner, up 7% after earnings and sales came in better than expected. Still, the stock met resistance at its 200-day moving average around 74.50.

Procter & Gamble (PG) also outperformed, ending mostly flat. It’s testing support at the 50-day moving average.

Outside of the Dow Jones, another consumer staple stock is making a good test of its 50-day line. Shares of Church & Dwight (CHD) added 0.4% to 64.90.

Top-Performing Growth Stocks

Atlassian (TEAM) continued to fight a good fight amid a lot of selling in the software sector. Shares fell 1.4% as it works on a cup-with-handle base with an 89.92 entry. It was featured in today’s Sector Leaders column.

Inside the MarketSmith Growth 250, Crocs (CROX) continues to hold up well after a recent gap up in price. It’s testing support at the 50-day moving average.

At the New York Mercantile Exchange, U.S. crude oil futures settled at $45.59 a barrel, down 0.6%. For the week, it lost around 11%.

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