A mundane and boring session became more hectic and worrisome as several factors are pressuring stocks.

Initial weakness out the gate is all coming from the Technology space.  First, Netflix (NFLX) got hammered on another downgrade (I’ve said it’s going to take six months into Disney (DIS) and other competitors for the company to prove it can maintain market share and margins).  Then subpar results from Atlassian (TEAM) caused massive weakness in software stocks.

Further weakness in the markets is coming from disappointment that the Fed officials weren’t more dovish.  While consensus is there will be another rate cut this month, many thought Ester George could pivot on recent weaker-than-expected retail numbers.  Instead, she voiced concerns about unintended consequences of more rate cuts.   Dallas Fed President Kaplan had been loath to cut rates for a long time and has returned a non-committal position where he says its “wise to wait.” 

Finally, a report Boeing (BA) may have held back employee text messages that could have been potentially damaging in the 737 investigation has sent the most influential stock in the Dow tumbling.  

All these concerns can be addressed.  Technology stocks become screaming buys at a certain point, and probably rebound swiftly.  The Fed will probably cut once, and if they don’t need to cut anymore after that, it’s even better news.

It’s hard to believe Boeing CEO will keep the job much longer; although, not sure he will be moved before the congressional hearing later this month.

The session began with strong earnings and ultimately that’s what will dictate individual stocks and overall market direction. 

Have a great weekend.