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Afternoon Note

Tik Tok

By Charles Payne, CEO & Principal Analyst
9/18/2020 1:59 PM

The markets are all decisively in the red today, and on the way to a three-day losing streak.  An early rally attempt failed as investors continue to mull over TIk Tok news and the stall on Capitol Hill relating to the next round of stimulus.  Today, is quadruple witching, so that too will add to market volatility.

After having some time to digest the latest Tik Tok saga, the news has added to investor concern and is adding pressure to Technology as a whole.  Starting Sunday, the U.S. will no longer allow users to download TikTok or WeCHat.  Apple (AAPL) and Microsoft (MSFT) are getting hit the hardest and semiconductors are also taking a beating.  The Philly Semiconductor index is down over 2%. 

All of FAANG is down, and Technology is by far the worst performing sector.  Of the 11 S&P 500 sectors, only Financials and Healthcare are in the green as investors look for some buying opportunities from beaten down sectors. The S&P 500 was not able to hold 3,331 and has broken below its 50-day moving average of 3,343.  Let’s see if buyers emerge.

S&P 500 Index

 

-1.14%

Communication Services (XLC)

 

-1.29%

Consumer Discretionary (XLY)

 

-1.30%

Consumer Staples (XLP)

 

-0.58%

Energy (XLE)

 

-0.81%

Financials (XLF)

+0.44%

 

Health Care (XLV)

+0.13%

 

Industrials (XLI)

 

-0.36%

Materials (XLB)

 

-0.8%

Real Estate (XLRE)

 

-1.24%

Technology (XLK)

 

-2.01%

Utilities (XLU)

 

-0.96%

Breadth is negative, decliners are outpacing advancers, but substantially more new stocks are hitting 52-week highs than lows as rotation continues.

Issues:

NYSE

NASDAQ

Advancing

1,038

1,416

Declining

1,933

1,922

Issues at:

52 Week High

54

70

52 Week Low

12

18

Volume:

Advancing

765.59M

948.94M

Declining

1.28B

1.16B

 

On a brighter note, the final read for University of Michigan’s consumer sentiment hit a 6-month high in September to 78.9 from August’s read of 74.1, and topping expectations of 75. 

For those celebrating the New Year, we wish you a happy and healthy and sweet Rosh Hashanah.  Have a great weekend, all. Stay safe and be well.


 

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