April Webinar RegistrationApril Webinar Registration


Stocks Close Mainly Lower In Technology Sector Rout; Why The Dow Outperformed

A sell-off in the technology sector gashed the Nasdaq composite Wednesday, while the Dow Jones industrial average managed a small gain.

X

The Dow edged up 0.1% after industrials Caterpillar (CAT) and 3M (MMM) rose more than 1%. Consumer companies Walmart (WMT), Verizon (VZ), Coca-Cola (KO), Johnson & Johnson (JNJ) and Walgreens Boots Alliance (WBA) also rose more than 1%. Verizon climbed from support at the 10-week moving average.

The Nasdaq stumbled 1.2% as sellers took aim at technology leaders. The Nasdaq closed below the 8000 level, a week and a half after the index topped that milestone.

Nasdaq flagship companies were no refuge. Amazon.com (AMZN) and Facebook (FB) fell more than 2%, Netflix (NFLX) slid more than 6% and Microsoft (MSFT) lost nearly 3%.

Software and semiconductor shares were among the weakest techs. Solar and biotechs — two other sectors with big weightings in the Nasdaq — also were broadly lower.

The S&P 500 fell 0.3%. Volume climbed on the Nasdaq and fell on the NYSE, according to early data. Decliners led advancers by 12-to-7 on the Nasdaq and by 5-4 on the NYSE.

The selling in technology spread to the IBD 50, where the largest losses were concentrated in internet and software companies.

Arista Networks (ANET), Twitter (TWTR), Momo (MOMO), RealPage (RP), Paycom (PAYC) and others slid 4% to nearly 6%. Twitter CEO Jack Dorsey and Facebook COO Sheryl Sandberg testified Wednesday before a Senate committee on disinformation in social media.

PRA Health Sciences (PRAH) edged past the 108.12 buy point of a flat base. But the medical research services provider closed below the entry in mediocre volume.

In one of the few bright spots Wednesday, Vera Bradley (VRA) leapt 15% after earnings beat views and the company's outlook was optimistic. The handbags and accessories company climbed back above the 15.55 buy point of a cup with handle initially cleared Aug. 20.

RELATED:

Five Key Investing Lessons From Today's Sell-Off

Netflix Original Video Quality Slips As Quantity Increases

Use The 10-Day Moving Average To Get Ahead Of Sell Signals

Facebook Stock News