Follow us on facebook


Stocks Sell Off On Report That Flynn Ready To Testify Vs. Trump | Stock News & Stock Market Analysis

The major market averages sold off in late morning trade on an ABC News report that Michael Flynn, briefly Trump’s national security adviser, will testify against the president as part of a plea deal with special counsel Robert Mueller.

X The tech-heavy Nasdaq tumbled 1.9%, while the Dow Jones industrial average lost 1.25% and the S&P 500 1.4%.

Flynn pleaded guilty Friday morning to lying to the FBI about his conversations with the Russian ambassador before Trump took office. ABC News, citing sources, says that Flynn is willing to testify that Trump ordered him to make those contacts.

Also on tap today is a possible Senate vote on the GOP tax bill, as Republican leaders claimed to have the votes to pass the legislation.

On the economic front, the ISM Manufacturing Index for November came in at 58.2 compared with the Econoday 58.4 consensus figure.

Among the Dow Jones Industrial components, Chevron (CVX) paced the advancers with 0.5% rise amid a 2% gain in the price of crude oil. The stock is approaching a 120.99 flat-base buy point.

On the downside, Apple (AAPL) fell 1.5%, as it looks to close out the week with a more-than-3% weekly decline. Shares are back to top of a buy range from a 160.97 cup-with-handle entry.

Elsewhere in the Dow, Visa (V) dropped more than 2%, but remains above the 50-day line and well-above a 96.70 flat-base buy point.

FANG stock Amazon.com (AMZN) fell 1.7% amid a report from CNBC that the e-commerce giant was in talks with generic drugmakers Mylan (MYL) and Novartis (NVS) unit Sandoz about a potential entry into the pharmacy market. The stock is extended from a 1083.41 buy point.

Tech leader Facebook (FB) dropped 1.6%, back below its 500-day line and its  175.59 flat-base buy point.

Among companies reporting earnings, IBD Sector Leader Five Below (FIVE) handily beat top- and bottom-line estimates late Thursday. Shares moved down 3%, but remain well-extended above a 54.23 buy point.

Discount retailer Big Lots (BIG) dropped 4% early, falling back into the 5% buy range from a 54.28 cup-with-handle entry. Early Friday, the company reported better-than-expected earnings, while raising its current-quarter and full-year guidance.

Beauty store Ulta Beauty (ULTA) fell over 8% after it reported slowing same-store sales growth and a mixed Q4 outlook. Shares have been stuck in a downtrend since mid-2017 and are currently more than 30% from its 52-week high.

Within the IBD 50, only a handful of names were trading in positive territory in morning trade, while leading chip stocks were under pressure in the stock market today.

Applied Materials (AMAT) declined nearly 4% and fell further below its 50-day line. Meanwhile, graphics-chip maker Nvidia (NVDA) continued its battle for support at the 50-day line. Shares fell nearly 4%.

On the downside, Alibaba (BABA) was on pace to extend a four-day losing streak, falling 1.1%. Shares were on track to close below the 10-week line for the first time since a Feb. 22 breakout above a 104.67 cup-with-handle entry. Shares have risen as much as 83% from that buy point.

RELATED:

IBD 50’s Five Below Crushes Earnings Views, Sees Strong Holiday Sales

Dow Jones Industrial Average And Dow Stocks: News And Analysis

FANG Stocks News & Quotes: Facebook, Amazon, Netflix, Google

U.S. Auto, Manufacturing Sectors In Focus: Investing Action Plan

Source link

No comments.

Leave a Reply