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Futures for the Dow Jones industrial average, S&P 500 index and Nasdaq 100 fell slightly Sunday evening after leading tech stocks such as Apple (AAPL), Facebook (FB) and Nvidia (NVDA) suffered their worst losses in months. Meanwhile financials such as Morgan Stanley (MS), Bank of America (BAC) and Citigroup (C) continued their recent outperformance.
XAutoplay: On | Off Futures for the Nasdaq 100, which includes some of the biggest tech stocks, fell nearly 0.2% below fair value. Dow and S&P 500 futures were 0.1% lower.
On Friday, the Nasdaq composite, S&P 500 index and Russell 2000 all hit all-time intraday highs. But then tech stocks that have been soaring in 2017 suddenly reversed. Apple lost 3.9%, though it did manage to close just above its 50-day line. Facebook, Amazon (AMZN) and Netflix (NFLX) also tested their 50-day lines. Google parent Alphabet (GOOGL), the fourth member of the FANG group, did not, but it also lost more than 3%.
Nvidia, which at Friday’s peak had soared nearly 64% since its May 9 earnings, reversed to lose 6.5%.
Dow Stands Tall
Meanwhile, the Dow Jones industrials ended Friday near session highs, even with Apple, Intel (INTC) and Microsoft (MSFT) suffering big losses. Credit Dow drug components Pfizer (PFE) and Merck (MRK), as well banking giants JPMorgan Chase (JPM) and Goldman Sachs (GS). Merck, JPMorgan Chase and Goldman Sachs all regained their 50-day moving averages.
Four Top Financials Near, In Buy Range
Citigroup extended Thursday’s breakout on Friday, closing at 64.45, still in range from a 62.63 buy point. Morgan Stanley tried to clear a 44.96 double-bottom entry, but closed just below that level at 44.91.
JPMorgan is 2.5% off a buy point, while Bank of America is about 3% below an aggressive entry.
Is this the start of a sustained revival for financials or a temporary move? Don’t try to predict the market: Follow the actions of major averages and leading stocks, using the Stock Market Today and The Big Picture. Friday’s sell-off pushed market direction to uptrend under pressure.
One key factor for bank stocks and the overall market is the Federal Reserve. This week the Fed is expected to raise interest rates yet again. But with inflation stubbornly low and President Trump’s fiscal agenda stumbling, policymakers may hint at a go-slow approach for future hikes.
In Monday trading intraday, Japan’s Nikkei fell 0.4%, China’s Shanghai composite 0.2% and Hong Kong’s Hang Seng 0.85%.