Dow Jones Futures: Apple Stock, Goldman Stock Lead Market Sell-Off; What To Do Now

Dow Jones futures rose modestly late Monday, along with S&P 500 futures and Nasdaq futures. Apple (AAPL) sold off 5% in the stock market Monday, leading a big sell-off that raised more concerns about the new uptrend. But it wasn’t just Apple stock. A wide array of big techs suffered heavy losses, from FANGs (AMZN) and Facebook (FB) to Advanced Micro Devices (AMD), Nvidia (NVDA) and Tesla (TSLA). So did Apple’s Dow Jones peers Goldman Sachs (GS), Boeing (BA) and Home Depot (HD).


What should you do now? Listen to the stock market and follow sound investing rules.

Dow Jones Futures Today

Dow Jones futures climbed 0.3% vs. fair value. S&P 500 futures were 0.35% above fair value. Nasdaq 100 futures advanced 0.3%. Remember that Dow futures and other overnight action don’t necessarily translate into actual trading in the next regular session.

In Monday’s stock market trading, the Dow Jones fell 2.3%, the S&P 500 index dropped 2% and the Nasdaq composite lost 2.8%. The Dow Jones fell through its 50-day line. The S&P 500 index slid through its 200-day, after the Nasdaq did so on Friday. One silver lining: Volume was lower Monday on the NYSE and Nasdaq, which means it wasn’t a distribution day.

Apple Stock Gets Title Role

Apple stock had the title role for Monday’s sell-off, plunging 5%, falling to three-month lows, wiping out the big August rally and closing just above the 200-day line. Apple fell on warnings from Lumentum (LITE) and other iPhone suppliers, as well as JPMorgan citing “bloated” iPhone XR inventories. All that helped slam a number of other Apple suppliers, with Broadcom (AVGO) down 6.4%.

FANGs, Other Top Techs Part Of Ensemble Sell-Off

Apple had the title role, but (in honor of the late Stan Lee) Monday’s slide was the work of an Avengers-like superhero ensemble. The FANGs — Facebook stock, Amazon stock, Netflix and Google parent Alphabet — all fell at least 2.3%. So did AMD stock, Tesla stock, Microsoft (MSFT), Cisco Systems (CSCO), Intel (INTC), Adobe (ADBE), (CRM) and PayPal (PYPL), with several falling much further.

Goldman stock plunged 7.5% Monday to a two-year low after losing 3.9% Friday amid more fallout from Goldman’s role in a Malaysian investment fund scandal. Fellow Dow Jones component Boeing lost 3.3%, back below its 50-day line, though its chart looks better than many. Home Depot stock slid 3.5% ahead of its Tuesday-morning earnings report.

Meanwhile, some recent breakouts have seen big reversals, adding to stock market rally concerns.

Stock Market Strength

So, what’s working? A number of top retailers are in or near buy zones. Walmart (WMT) slipped back into buy range with earnings this week. Dollar General (DG) is in buy range, while Ulta Beauty (ULTA) extended last week’s breakout. Some drugmakers and medical services firms also are acting well.

What You Should Do Now

Don’t guess what the stock market will do or try to impose your will on Wall Street. Listen to what the market is saying via the action of the major market averages and leading stocks. Read The Big Picture after every market session.

Follow your investing rules. It’s still technically OK to buy stocks in proper buy zones, but be cautious.

If you recently bought stocks breaking out of bullish bases, follow your sell rules. If a recent purchase has reversed lower, you might consider selling part or all of your position. If a stock has dropped 7%-8%, just sell.

However, if your stock is holding above the buy point, you might try to hold. But be ready to act quickly if the technical action worsens for your individual holdings or the broader stock market.


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Originally posted 2019-09-19 23:25:09.


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