The Nasdaq got dealt a big blow in today's stock market as Facebook (FB), Amazon (AMZN), Alphabet (GOOGL) and Apple (AAPL) sold off hard on reports of federal probes.
XThe Nasdaq composite tumbled 1.6%, the S&P 500 gave up 0.3% and the Dow Jones Industrial Average was barely higher. Small caps avoided the sell-off as the Russell 2000 climbed 0.3%. Unofficial figures showed higher volume on both the NYSE and Nasdaq vs. Friday.
Microsoft (MSFT) and UnitedHealth Group (UNH) led the Dow Jones losers with losses of more than 2% each. But the blue chip index outperformed as Verizon (VZ) soared nearly 4% and at least seven other Dow stocks added more than 1% apiece.
Apple, down 1%, weighed on the Dow and the Nasdaq though it pared a deeper loss. Shares neared a three-month low amid reports the Department of Justice will handle antitrust concerns against the iPhone maker. The stock is now 25% off its October peak and 12% below a 197.79 handle entry.
FANG stocks also endured a beating and took a toll on the Nasdaq.
Facebook and Google parent Alphabet sank a respective 7% and 6% in heavy trade on reports both companies are targets of federal probes. Facebook is now testing its 200-day line for the first time since March. The Federal Trade Commission will investigate if the social network is curbing digital competition. The DOJ plans to launch an antitrust investigation against Google.
Amazon (AMZN) crashed though its 200-day line as it dropped nearly 5% in twice normal volume. The retail giant will face an antitrust investigation led by the FTC. Netflix (NFLX), which didn't get named as a probe target, fell 2% to undercut its 200-day line. Volume was slightly lower than normal.
Internet Stocks Take Nasdaq Down
Internet, software and automakers led the sell-off in today's stock market. Internet content gapped down and plunged 6% to a five-month low. But steel, gold miners and building-related stocks bucked the decline.
Gold ETFs spiked as the precious metal rose 1.5% to $1,331.20 an ounce. VanEck Vectors Gold Miners (GDX) gapped up and rose 4% as it builds the right side of a base. Shares are now about 5% below a 23.80 potential buy point. Keep in mind, though, that all purchases are highly risky with the market in correction.
VanEck Vectors Junior Gold Miners (GDXJ) leapt more than 5% to hop back above its 50-day line for the first time in nearly two months. It's 11% off a Feb. 20 high. GDX is up 7% this year, while GDXJ has advanced 3%. Both funds were featured in this ETF column last week.
Gold Adds To Gains
The two biggest gold commodity ETFs also rallied. SPDR Gold Shares (GLD) popped 1.4% as it approaches a 127.31 potential entry. Meantime, iShares Gold Trust (IAU) added 1.4% to get close to a buy point at 13.
"Gold is a clear winner amid growing fears of a prolonged trade war on multiple fronts and a global downturn," London Capital Group said in a research note. "As long as trade tensions remain elevated and fears of a Fed rate cut intensify, gold could quickly move toward $1,350 and beyond."
On the IBD 50, Kirkland Lake Gold (KL) surged more than 5% to surpass a 35.30 buy point of a cup with handle. It remains in buy range from the entry. The gold miner joined IBD Leaderboard Monday as a half-position.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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