Tech stocks ended with stiff losses Monday as worries about the potential for more tariffs on Chinese imports weighed. FAANG stocks weren’t immune to the selling as Amazon.com (AMZN) and Netflix (NFLX) ended with losses of more than 3%.
Amazon came close to a test of the 50-day moving average but didn’t quite touch the line.
The Nasdaq composite lost more than 1.4% and the S&P 500 gave back nearly 0.6%. The Dow Jones industrial average eased nearly 0.4%. Preliminary data showed volume on the Nasdaq coming in higher than Friday’s level, resulting in another distribution day, as tech stocks were weak across the board.
Apple (AAPL) was one of the worst decliners in the Dow Jones, down nearly 2.7%.
Top-performing software stocks, the best-performing sector in the market currently, were weak across the board. IBD’s enterprise software group, the group with the broadest leadership in the market currently, was the worst performer, down just over 3%.
In stock market results today, Lululemon Athletica (LULU) bucked the trend, rising 1%. An upgrade from Wells Fargo to outperform from market perform was the catalyst. Lululemon is a member of IBD’s Leaderboard, which is trouncing the S&P 500 by a wide margin this year.
Ceridian (CDAY) was another nice gainer, up nearly 6%. The stock showed good follow through after a bullish breakout Friday over the 39.45 cup-with-handle buy point. Ceridian was a day ahead of Friday’s breakout in IBD’s Stock of the Day feature.
Tech Stocks Hit In Nasdaq 100
Besides the FAANG stocks, other big decliners in the Nasdaq 100 included JD.com (JD), Workday (WDAY) and Autodesk (ADSK).
Inside the IBD 50, Viper Energy Partners (VNOM) outperformed, rising 3%. It’s trading tightly near highs and could try to clear a short consolidation soon.
Benchmark crude oil futures for October delivery edged nearly 0.4% lower to $68.75 a barrel after an early rally of more than 1%.
