Tech selloff goes global

“Shares of technology companies fell around the world Monday, extending Friday’s steep declines in the U.S. giants that had been driving this year’s stock-market gains,” Riva Gold and Alexander Osipovich report for The Wall Street Journal. “The tech-heavy Nasdaq Composite fell 0.8%. The S&P 500 lost 0.4% and the Dow Jones Industrial Average fell 70 points, or 0.3%, to 21202.”

“Apple shares lost 2.6%, Google parent Alphabet fell 1.2%, Facebook dropped 1.1% and Amazon.com lost 1.2%. Shares of those companies each fell 3% or more Friday,” Gold and Osipovich report. “Several large tech companies have led this year’s rally, prompting concerns that major indexes’ gains have been overly concentrated in a handful of stocks. Tech shares in the S&P 500 have climbed roughly 17% this year, while the Nasdaq has risen 15%.”

“Analysts have cited a series of critical research notes of big-name players like Apple as the trigger for the selloff, but after the run-up, the sector ‘was ripe for a pullback of some sort,’ said Mark Luschini, chief investment strategist for Janney,” Gold and Osipovich report. “The Stoxx Europe 600 dropped 1%, weighed down by a 3.6% drop in the tech sector… Earlier, declines in tech shares also hit stock markets in Asia. Leading the way lower was Hong Kong’s Hang Seng Index, which slid 1.2% amid declines in internet heavyweight Tencent, which had recently climbed to record highs.”

Read more in the full article here.

MacDailyNews Take: The profit taking continues.

SEE ALSO:
Big tech stocks under pressure again after Apple shares downgraded – June 12, 2017
Nasdaq sinks as Apple leads abrupt tech selloff – June 9, 2017

22 Comments

  1. All Bubbles eventually find a pin, and all economic cycles eventually find an end.

    The stock market is well ahead of economic fundamentals. All the expectations of overseas repatriation has long been priced in, but Agent Orange and his Republican Congress has yet to make a budget, change tax policy, repeal or replace the ACA, etc.

    The debt limit fast approaches and Ryan lacks the votes among Republicans to raise the debt limit. Ms Pelosi says that is not her problem, which means either the Freedom Caucus will have to swallow hard and raise the debt ceiling or Trump and Ryan will have to come to Ms Pelosi – hat in hand. That or shut down and default. If the Democrats have to put Ryan over the top on the debt limit they are going to want something from Trump and Ryan.

    The economy is one sharp economic shock from a correction and the Republicans will have to deal with the dog shit on their shoes. Individuals, corporations and governments of all levels are larded with debt and most are heavily leveraged. Will the Republicans let the correction go forward on their watch or will they kick the can down the road?

    This commenter is debt free and liquid.

    1. …so he needs to take responsibility for the stock market decline, as well. Until Trump ends the hypocrisy and actually admits that he does screw up, that he doesn’t always win, and that he has made a lot of fallacious and stupid statements, our federal government will continue to flounder. Trump’s own people worry about where his target will land next while playing the guessing game of what the POTUS actually meant in his statement/tweet yesterday. This is no way to govern a small town, much less a country. It is no wonder that many of Trump’s actual businesses have failed. His success is mostly in hyping himself to the public and marketing his surname as some type of success symbol.

      Many of Trump’s most ardent supporters appear to be intellectually challenged, judging from their inability to recognize his BS for what it is…

      1. Several national newspapers that lean left have already stated on page one the stock market is feeling the positive Trump influence. So naturally, why not take credit?

        I disagree he should take credit for two down days. As MDN said in their take its called profit taking. President Trump has not done anything supremely negative that would sway the markets since Friday.

        Quite the opposite — the Comey testimony was overwhelming positive for the president …

        1. (Transcript all caps- not me)
          ROGER MCNAMEE, FOUNDER OF ELEVATION PARTNERS AND SILVER LAKE PARTNERS, INTERVIEWED BY CAROLINE HYDE OF BLOOMBERG

          BLOOMBERG TECHNOLOGY SEGMENT 1 11 APRIL, 2017
          (the conversation regards jobs, policy , tech and the economy)

          CAROLINE: TRUMP DID, HE’S TRYING TO GET PEOPLE TO —

          ROGER: HE’S SIGNING UP TO TAKE CREDIT FOR JOBS CREATED BY OTHER PEOPLE.

          THE JOBS ARE AT FULL EMPLOYMENT. THERE’S NOTHING HE CAN DO ON JOBS. WHAT WE HAVE TO DO IS QUALITATIVELY CHANGE THE JOBS THAT ARE OUT THERE. THE SHARING ECONOMY IS NOT THE ANSWER.

          PEOPLE HAVE TO HAVE JOBS WHERE THEY CAN TAKE CARE OF THINGS LIKE HEALTH CARE. I DON’T KNOW ABOUT UNIVERSAL INCOME, BUT WHAT I DO KNOW IS UNIVERSAL HEALTH CARE WOULD ACTUALLY TAKE AWAY ONE OF THE BIGGEST FEARS PEOPLE HAVE, AND MAKE IT POSSIBLE FOR THE ECONOMY TO DO BETTER THAN IT’S DOING NOW.

          I THINK RIGHT NOW WE HAVE HOLLOWED OUT THE ECONOMY, WE HAVE ELIMINATED THE MIDDLE CLASS IN WAYS THAT ARE JUST NOT HEALTHY FOR PUBLIC COMPANIES, NOT HEALTHY FOR PRIVATE COMPANIES.

          IF YOU WANT TO BE A BUSINESS PERSON, ASK THE QUESTION, IS THERE A BETTER WAY THAN THE WAY WE ARE DOING IT RIGHT NOW? THE ANSWER IS LIKELY TO BE YES.

          (LINK TO WATCH FULL SHOW:
          https://www.bloomberg.com/news/videos/2017-04-12/full-show-bloomberg-technology-04-11-video?utm_content=buffer1dd6f&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer)

          1. Bloomberg is a well known suspect publication the equivalent of the Times and Post that takes shots at Trump weekly.

            That said, some nuggets of truth in the article. I read everybody and sifting through the truth is much harder and grows exponentially the further left the publication …

            1. Roger McNamee is not an employee of Bloomberg, LP. He is an entrepreneur who has a long track record of investment in Technology and other sectors.
              Bloomberg is the most widely distributed and respected business news and information service in the world. Subscribers pay about $25,000 per year for one terminal access to the data and content. This is not some random blog run from Mom’s basement.

  2. That this happened immediately after the U.K. Election makes me think this is a reaction to the added uncertainty over brexit. The market would have preferred a majority for the conservatives.

  3. The global economy had positive momentum for the last 8 years, but steady 2% growth wasn’t good enough for the get-rich-quick investors.

    So Wall Street does what it always does, it pads its profits by automation, by outsourcing, and by firing workers. Main Street America, even with negative tax rates (i.e., corporate welfare incentives that states use to attract business investment), can never compete with countries that pay their workers a few dollars per day.

    What has Trump done to reverse the trend? Well he packed his cabinet with Goldman Sachs investors, of course.

    The great orange deal maker bluffed low information Americans that somehow he was different, that he was “anti-establishment”. Obviously that was a bald faced lie. Trump has no economic ideas of his own, he is just letting Wall Street run roughshod over US small business and Main Street America.

    News flash: slashing rules that protect Americans’ savings investments so that Wall Street gamblers and multinational corporations can play the international gambling racket with no oversight is not the way to future prosperity for all. Pushing federal debt to new record levels in order to circle the wagons behind isolationist policies, insane defence spending, and mexican walls is likewise the surest way to economic stagnation, not prosperity.

    If Trump wants to do something good for the economy, he should invest in worker training and education, small business grants, and infrastructure modernisation. But he and his party obviously don’t have a workable plan. Instead they are using the only tool they have ever offered: pretending that shaving income tax can somehow make up for the enormous unsustainable gaps between OBSCENE executive pay in the US compared to professional and working class US pay, then overseas worker pay. No tax jiggering is going to fix the fundamentals there.

      1. The 24 people listed below will be serving with President Trump in his Cabinet.

        • Vice President Michael R. Pence
        • Secretary of State Rex W. Tillerson
        • Secretary of the Treasury Steven T. Mnuchin
        • Secretary of Defense James Mattis
        • Attorney General Jeff Sessions
        • Secretary of the Interior Ryan Zinke
        • Secretary of Agriculture Sonny Perdue
        • Secretary of Commerce Wilbur L. Ross, Jr.
        • Secretary of Labor Alexander Acosta
        • Secretary of Health and Human Services Thomas Price
        • Secretary of Housing and Urban Development Benjamin S. Carson, Sr.
        • Secretary of Transportation Elaine L. Chao
        • Secretary of Energy James Richard Perry
        • Secretary of Education Elisabeth Prince DeVos
        • Secretary of Veterans Affairs David J. Shulkin
        • Secretary of Homeland Security John F. Kelly
        • White House Chief of Staff Reince Priebus
        • U.S. Trade Representative Robert Lighthizer
        • Director of National Intelligence Daniel Coats
        • Representative of the United States to the United Nations Nikki R. Haley
        • Director of the Office of Management and Budget Mick Mulvaney
        • Director of the Central Intelligence Agency Mike Pompeo
        • Administrator of the Environmental Protection Agency Scott Pruitt
        • Administrator of the Small Business Administration Linda E. McMahon

        (Former Goldman Sachs employee, Gary Cohn, who runs the White House National Economic Council is not in the president’s cabinet.)

        1. As always, botfink, you take all words literally and argue that black is white. You are so far off base, I suppose no facts will reel you back to reality. The Trump admniyis chock full of global bankers from GS, just like most administrations for the last several decades.

          Having yet another GS alumnus as Secretary of the Treasury, one of the most influential posts, is disgusting enough, and completely hypocritical given Trumps campaign rhetoric. Trump also appointed GS alum Donovan as #2 at the Treasury. By the way, the federal government is running bigger budget deficits than one year ago, so that goes to show how fiscally responsible these debt creators are.

          You conveniently left out “special advisor” Bannon, formerly of GS, who appears to be the only person Trumpbo listens to, at his long term peril.
          Clayton, a lawyer who represented GS, is now SEC chair.
          Powell, GS partner, is now a deputy national security advisor. Quite an interesting role considering bankers have fundamentally hollowed out the economic vitality of the US.
          Also don’t forget Scaramucci, a Trump campaign advisor who still has connections.

          Yet you still cheerlead for lyin’ Trump. Why?

          1. Bullshit: Paul – “Well he packed his cabinet with Goldman Sachs investors, of course.”

            Reality: Me – Actually, there is one ex Goldman-Sachs employee in Trump’s cabinet: Steven Mnuchin, Secretary of Treasury.

            Like Paul, you are just a liar.

            1. PS: In 2016, Goldman-Sachs was The Clot’s biggest donor to her miserably failed campaign.

              Goldman-Sachs contributions to Trump campaign: The big fat zero, bïtch.

  4. I don’t want to comment on the market in general. Sometimes Apple gets hit due to macro factors in the economy which has little to do with it like the 2007 real estate crash where aapl fell like 50%.

    I didn’t sell any aapl at that time and bought more actually and made out ok.

    I think term investors have to look at Apple hard for themselves whether they believe that the company intrinsically is OK (management, Cash pile etc) , whether they believe in that ‘pipeline’ i.e. future products scenarios.
    Traders will push the stock up and down but if there is fundamental value in the company investors holding long enough might be OK.
    (The ‘fundamental’ value is for each person to decide for him/herself).

    For me I’m much happier about the fundamentals after the WWDC announcements than before:
    — there’s good news in the Mac line which I thought Apple had abandoned. Macs are Apple’s second largest hardware money maker, make more money than iPad and near twice all the other hardware in the Others Category combined (Watch, AirPods, Beats, TV, iPod etc).
    So Apple taking Macs seriously again and with less than 10% marketshare worldwide there is potential.

    I know there are still some Mac concerns (I’m a Mac Pro user myself ) but the news in general is positive.

    — Besides that there is the baby steps in the true Pro Os in iOS 11 (with file app etc).
    All the other announcements : AR , potential for medical sensors in the Watch etc. (the diabetic sensor if they can make it to work is a big deal).

    As Apple solidifies the advantages of its ecosystem by investing in development (which it’s competitors can’t match) it offsets the continued whining of Wallstreet analysts that Apple will be destroyed by ‘commodity’ manufacturers undercutting it. (This ‘moat’ is why Warren Buffet who doesn’t really trade but makes value investments put so much money into Apple over the last year).

    I know that Wallstreet traders who don’t actually look at technology closely are more interested in hyped ‘glam’ like Google Glasses but I’m comfortable with the more ‘fundamental’ directions Apple is taking (more so than before WWDC anyways) — although I think there are some issues Apple still needs to address like the TV, Mac Mini (some entry level Mac) etc. Apple seems to going the right way (after a long lull) in products. With the Campus construction out of the way also staffers can hopefully be more focused.

  5. AAPL gets a “downgrade” from “Buy”to “Neutral” with a price target of $150 (down from $160) early in the day which exacerbated the tech selloff, then later in the day AAPL gets a “Reiterate” of “Outperform” and a price target of $170 from a different firm. Go figger!

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