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Tech Stocks, FANGs Pressured Again As Amazon Gaps Below Support Level

Sellers swarmed around two FANG stocks in the stock market Wednesday as tech stocks in general faced another round of selling.

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At the close, the Nasdaq composite lost close to 0.9%, the S&P 500 slipped 0.3%, and the Dow Jones industrial average fell less than 0.1%. Preliminary data showed volume on the NYSE and Nasdaq coming in well above Tuesday’s levels.

Merck (MRK) and Walmart (WMT) were top gainers in the Dow, up 2% to 2.5%.

Chip names in the Nasdaq 100 lagged again as names like Microchip (MCHP), Broadcom (AVGO), Intel (INTC) and Lam Research (LRCX) ended with losses of 2% or more.

The bond market was quiet as the 10-year Treasury yield was mostly unchanged at 2.77%.

FANG Stocks Pressured Again

In the stock market today, FANG stock Amazon.com (AMZN) recovered off lows but still lost 4% on renewed reports that President Trump is considering additional taxes and other regulations for the internet retailer that’s become a formidable rival to brick-and-mortar retailers, including department stores and sporting goods chains.

Fellow FANG name Netflix (NFLX) also took heat, falling 5%. It’s testing support at the 50-day moving average for the first time after a breakout from a flat base in early January.

Retail stocks turned in solid performances, helped by strong earnings from Leaderboard name Lululemon Athletica (LULU). Shares jumped 9%. Other retail names holding up well in a weak market tape include Urban Outfitters (URBN), American Eagle (AEO) and Ollie’s Bargain Outlet (OLLI). Results from Ollie’s are due April 4 after the close.

In merger news, oil and gas producer Concho Resources (CXO) plunged nearly 9% on news that it’s acquiring RSP Permian (RSPP) for around $8 billion in stock. Shares of RSP Permian soared nearly 16%.

Top-rated growth stocks faced selling pressure again in the IBD 50 as 20 components fell 2% or more.

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