US equity futures were positive in the pre-market, including the Nasdaq. But after the open, the selling in tech overwhelmed the buying, in large part due to the 35% drop in Netflix shares and the fear that it put into holders of other (formerly) high-flying tech stocks. That's particularly true with Tesla (-4.9%) set to report imminently.
In terms of the macro outlook, I'll also be closely following what we hear from Whirlpool and Alcoa.
Despite the selling in tech, which also included FB and PYPL, the broader market held up thanks to bids in value stocks. The Russell 2000 posted a solid gain and the market also cheered on earnings from IBM (+7%) along with Proctor & Gamble (+2.7%). As a result, broader market indexes looked much better than tech.
- S&P 500 - flat
- DJIA +0.7%
- Nasdaq -1.2%
- Russell 2000 +0.6%
- Toronto TSX Comp - flat
Technically, the Nasdaq continues to flirt with the 61.8% retracement of the rally off the March low. Yesterday's pop looked promising but we're right back to within striking distance of a new five-week low. It all hinges TSLA now.
