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Stock Market Dives Again As Micron Technology Crashes On Earnings | Stock News & Stock Market Analysis

Leading technology stocks took heat again Friday as preliminary volume data showed a second straight distribution day for the Nasdaq composite and S&P 500.

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Big decliners in the Nasdaq 100 included Micron Technology (MU), down 8% on earnings. Western Digital (WDC) lost just over 8% in sympathy, while chip names Applied Materials (AMAT) and Lam Research (LRCX) ended with losses of around 6%.

At the close, the Nasdaq fell 2.4%; the S&P 500 lost 2.1% and the Dow Jones industrial average gave back 1.8%. The Russell 2000 dropped 2%. Preliminary data showed volume on the NYSE and Nasdaq coming in slightly higher than Thursday’s levels in the stock market today. Headed into Friday, the S&P 500 showed seven distribution days, with four of those days showing declines of 1% or more.

A distribution day is when one of the major indexes falls at least 0.2% in volume that rises vs. the prior session. Such action indicates intense professional selling, which can lead to a new market correction.

For the week, the Nasdaq slumped 6.5%, the S&P 500 gave back nearly 6% and the Dow fell 5.7%. The bond market was relatively quiet Friday as the 10-year Treasury yield eased 1 basis point to 2.81%. Earlier in the week, the Federal Reserve signaled a total of three interest rate hikes this year, although Wall Street viewed its 2019 interest-rate outlook as somewhat hawkish.

Several Dow components closed with losses of around 3%, including 3M (MMM), Pfizer (PFE), Microsoft (MSFT) and Goldman Sachs (GS).

A bright spot was IPO Dropbox (DBX). Shares closed at 28.48, after pricing last night at 21, above the proposed range of 18-20. The company provides cloud storage, sharing and collaborating services. Sales growth has been impressive in recent quarters, but the company isn’t profitable yet.

IBD 50 name Diamondback Energy (FANG) outperformed in the IBD 50, rising 0.1% to 127.96. But the fast-growing oil and gas producer ended near its session low after briefly clearing a 131.68 cup-with-handle buy point.

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