Stocks slumped despite the anticipated 4.1% GDP number that was released before the opening bell this morning. It might be a case of sell on the news, but it looks like it’s more about the big momentum names. The big 4 (FANG) stocks are showing a little wear and tear. Facebook dropped 20% on its earnings miss this week, while Netflix had already been hammered the week before. Indeed, Google and Amazon delivered good results that were met with initial enthusiasm, but by this afternoon, all four seemed a bit worn down. No wonder, they have outperformed the market by four to five times in the first half of the year.
As for the market in general, by the close the Dow Jones Industrial Average was down 76 points to finish the day at 25,451. The S&P 500 was down 18 points to close at 2,818. Gold was down $3 to trade at $1,222 per ounce, while oil was down $.7 to trade at $68.88 per barrel WTI.
For the most part earnings have been stellar, but forward guidance has been a bit of an issue. Stocks that disappoint or warn about future problems are getting taken to the woodshed. So, despite good earnings, share price performance has been mixed. Let’s see what next week has in store.
Have a great weekend everyone.