The FANG stocks were down today despite strong performances this year.
3 min read
Opinions expressed by Entrepreneur contributors are their own.
A morning rally in the stock market gave way to renewed selling in the afternoon as the Entrepreneur Index™ fell 1.66 percent on the day.
The Dow Industrials index was up more than 300 points in the morning but ended the day down 245, or 0.99 percent. The S&P 500 index fell 0.66 percent, while the technology-heavy Nasdaq 100 was down 2.02 percent.
The bloodbath continued in the technology sector. The so-called FANG (Facebook, Amazon, Netflix and Google or Alphabet) stocks that have underpinned the bull run in technology stocks and the broader market, were among the hardest hit today, with Amazon.com (-6.31 percent), Netflix (-4.96 percent), Alphabet Inc. (-4.75 percent) and Facebook (-2.26 percent) all down sharply. Chip-maker NVIDIA Corp.set a new 52-week low today, falling 6.39 percent — the biggest decline on the Entrepreneur Index™ today. Other tech stocks that traded lower included salesforce.com (-3.34 percent)., Verisign (-2.52 percent) and Adobe Systems Inc. (-2.28 percent).
Analog Devices was one of the few stocks to buck the bearish trend in technology. Down almost 20 percent since late August, the chipmaker’s stock gained 1.82 percent today. Cerner Corp., the healthcare information technology firm that lost 11 percent on Friday because of disappointing earnings, rallied 5.09 percent today — the largest gain on the Entrepreneur Index™.
Ford Motor Co. also posted a big gain after a Goldman Sachs analyst upgraded the stock to a buy, largely because of its 25 percent drop so far this year. The analyst expects the company’s previously announced restructuring plan to begin yielding benefits next year, and set a $12 target for the stock. Ford shares were up 3.34 percent today.
Defensive stocks fared significantly better than growth stocks today. The REIT sector was up sharply, with Essex Property Trust (3.49 percent), Extra Space Storage (3.32 percent) and Equity Residential (2.13 percent) posting good gains. The clothing makers, L Brands (2.99 percent), Ralph Lauren (2.88 percent) and Gap Inc. (2.07 percent) were also up for the day. Food manufacturers J.M. Smucker Company and Tyson Foods rose 2.23 percent and 1.8 percent respectively. Retailer Bed Bath and Beyond was also up 3.25 percent.
Economy-sensitive stocks were down on the day. Homebuilder D.R. Horton Inc. fell 2.8 percent. Oil and gas producer Hess Corp.was also down 3.36 percent as the price of oil continued to slide. Casino operator Wynn Resorts, down a crushing 44 percent this year, fell 6.3 percent — the biggest decline on the Entrepreneur index outside the technology sector. Brown-Forman Corp, the maker of Jack Daniels whiskey, was also down 0.9 percent. The Trump Administration reportedly plans to slap more tariffs on Chinese imports if trade talks with China don’t improve, and bourbon is a favorite target for retaliatory tariffs.
Alexion Pharmaceuticals was down again today by 3.45 percent. The drug-makers fell as a group on Friday after it was reported that President Trump was considering tying Medicare reimbursement rates for drugs to much lower prices paid in Europe.