U.S. stock indexes were down late Monday morning, as Nasdaq stocks tried to keep their stock losses small.
XThe Nasdaq sagged 0.6%. At one point, the composite index cut its morning loss to around 0.3%. The small-cap Russell 2000 fell 1.1%. The Dow Jones and S&P 500 skidded 1.6% and 1.3% lower, respectively. Volume rose on both major exchanges vs. the same time in Friday's session.
In the blue-chip Dow Jones, almost half of the stocks were down 1% or more. Apple (AAPL) dropped 2%; JPMorgan Chase (JPM), 3%; Goldman Sachs (GS), 1.5%; and UnitedHealth Group (UNH), 2.5%.
Apple's problems appeared to be related to a patent case vs. Qualcomm (QCOM).
Qualcomm's Win
Qualcomm announced Monday that a Chinese court sided with Qualcomm in a patent case against Apple. The preliminary injunction involves the iPhone 6S through iPhone X. The ruling went against four Chinese subsidiaries of Apple. Qualcomm first filed the case in late 2017.
Qualcomm gapped up as much as 4% and then eased to a 3.5% gain. Volume was running nearly 50% above Qualcomm's normal pace.
The chart for Qualcomm is ugly. The stock is 24% off its high. On the left side of its consolidation, two nasty gap downs mar the pattern.
Analysts expect Qualcomm to grow earnings 7% in fiscal 2019 ending in September. This would be the first earnings increase for Qualcomm since fiscal 2014.
No Breakouts Amid Stock Losses
With the uptrend under pressure, breakouts were virtually nonexistent.
The gold-mining group was headed toward a sixth consecutive gain. August 2017 initial public offering Kirkland Lake Gold (KL) was on track for a eighth straight gain. On Monday, the stock gained 2% as it tried to clear a 23.96 buy point in a consolidation that began about four months ago. Volume was 80% above average.
Other gold stocks advancing included Barrick Gold (ABX), up 2% and near a 14.20 buy point; Randgold Resources (GOLD), up 1.9% as it cleared a short consolidation; and Newmont Mining (NEM), up 2.5% but 18% off its high.
Gold has done OK amid the general market's difficulties. The S&P 500 lost 12% since its closing high Sept. 20, while iShares Gold Trust (IAU) gained 3%.
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