Dow loses 700 points as Amazon leads tech shares lower

“Stocks fell on the first trading day of the month and the quarter as a decline in Amazon shares put pressure on the broader tech sector on Monday,” Fred Imbert and Matt Clinch report for CNBC. “The Dow Jones industrial average traded 706 points lower, with Intel as the worst-performing stock in the index. The S&P 500 pulled back 3.1 percent and entered correction territory, with tech falling 3.3 percent. The index also dropped below its 200-day moving average, a key technical level. The Nasdaq composite dropped nearly 3.4 percent — also entering correction — as Amazon declined 5.4 percent.”

“The e-commerce giant’s stock fell after President Donald Trump tweeted on Saturday that Amazon was scamming the U.S. Postal Service, adding the service loses ‘billions of dollars’ delivering packages for the e-commerce giant,” Imbert and Clinch report. “Trump tweeted again about Amazon on Monday, saying: ‘Only fools, or worse, are saying that our money losing Post Office makes money with Amazon. THEY LOSE A FORTUNE, and this will be changed.'”

“Intel dropped nearly 10 percent after Bloomberg reported Apple would use its own chips for Mac computers, ditching Intel,” Imbert and Clinch report. “China announced overnight Monday it had implemented tariffs on… goods [that] had an import value of $3 billion in 2017.”

Read more in the full article here.

MacDailyNews Take: Happy shopping, bulls!

20 Comments

  1. Thanks to Drumpf, his insults, stupidity, and incompetence, we will all suffer- financially, of course, due to the instability, trade wars, and alienating- get Real, we Are a Global economy which is our Only chance of peace! But we will suffer in so many ways, have been since he took office, and I wonder if we can survive or even recover any time soon.

      1. That would be preferred of course. But his current policy is to apply the tariff across the board on every country affecting practically every nation directly or indirectly. When the 2 largest economies have a trade war the rest of the world suffers collateral effects.

    1. Sounds like you’d be VERY happy if the economy implodes (it won’t) just so you could say “see, you’re all stupid”.

      wait, here you are now…!

  2. This happens all the time. Some worthless dribble unrelated to Apple suddenly drops it stock. Then it rises again as the profiteers move in to snatch up a relative bargain.

    My question is: who are the doofuses who sell their stock?
    Question 1.1: are these people punished for trading on rumors?

    1. Considering that the large majority of AAPL is individual investor owned (larger than practically any other tech stock), YES to 1.1, those investors are being ‘punished’ for losing out on the next stock rise and institutional investors (and smart investors) are ‘winning’ by buying those sold shares after it has dropped.

    2. I always assume that selling on drops like that is mainly done algorithmically as it would take a pretty dumb sort of person to sell when there is a small drop based on a rumour when history shows that it’s usually a bad strategy. Having said that, you also have to wonder what sort of person might create an algorithm which sells at times like that too.

    1. Unlike the disappearing market for first-class mail, the USPS has competition for packages. If they are forced to raise their rates by $1.50 to punish Amazon, as The President suggests, all their customers—not just Amazon—will migrate to UPS and FedEx. The shippers—including Amazon—will raise their postage and handling fees, so it won’t hurt anybody but the consumers and postal workers. Once again, The President is trying to play chess without considering the consequences of his current move.

      1. It will also push Amazon into speeding up their plans to move shipping internally. For the past decade the Logistics ‘press’ has been commenting on how Amazon has been buying cargo planes and making deals with shipping companies to share ownership costs and cut into their current costs for UPS and FedEx services.

        1. If I understand it correctly, Amazon’s deal with the USPS is primarily for “last mile” delivery service. Amazon itself ships to local post offices, and postal workers make the house-to-house rounds.

          1. That is increasingly becoming true. Currently a small portion of USPS last mile services for Amazon comes from Amazon directly, the huge majority passes through UPS and FedEx and then uses USPS for the ‘last mile’ primarily for apartment dwellers and when it is more affordable to do so.

          2. Exactly
            FedEx and UPS push it through their network and then deliver the packages to the USPS closest to your home. It saves money for FedEx and UPS and helps the USPS keep it’s trucks full since they already route to every address every day.

            1. I do notice that padded envelopes come exclusively through the USPS though. Probably due to the law that allows the USPS the sanctioned monopoly on ‘letter’ parcels.

  3. You seem to forget that your taxes are paying for the billions in losses by the USPS. plus Trump probably has more business sense in one Finger than most of the people that post to this suite… He’s probably well aware of the impact and you just don’t see the end game..

    1. USPS is not losing money. They support themselves. They are required by law to find their pensions 75 years out. The govt wants to kill the PO. POTUS is a friggin idiot who doesn’t know his ass fro a hole in the ground.

    2. If you consider his skill as a con artist as “business sense,” than you are absolutely right. It’s amazing how he’s managed to fail in so many businesses, and still get people to pay him millions to stick his name on things.

      The old adage is true: The IS a sucker born every minute…

    3. You should do a bit of research before you make a statement like “your taxes are paying for the billions in losses by the USPS”. The USPS is not paid for with ANY tax dollars, rather its revenue is earned by the payments made for postal services to both private and public entities that does include the Federal government. To be fair the USPS was in the past funded by tax dollars but it has been quite a few Presidents since the USPS was mandated to become a special government agency that would support itself but also be “revenue-neutral”.

      https://about.usps.com/who-we-are/postal-facts/top-10-things-to-know.htm

      (see section titled “The USPS does get some taxpayer support.”)
      https://www.thoughtco.com/about-the-us-postal-service-3321146

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