An ugly reversal in Nvidia is the headline in the Nasdaq as it finished 1.9% and fell more than 3% from the highs. The chart is a technical red flag with a big outside day; and worse is that it came on ostensibly good news.
A look at the winners and losers highlights what the story is beneath the story. The laggard on the Nasdaq today was DollarTree, which fell 12.9%. The company said that consumers' spending shifted to buying food and essentials in a sign of economic weakness, particularly at the low end. That's something that other retailers have also highlighted.
Another sure sign of consumer weakness is Nike, which is down an unprecedented 12 days in a row.
Another red flag for consumers is shares of Disney, which fell 4% to a 9-year closing low.
Closing changes for the main indexes:
- S&P 500 down 60 points, or 1.4%
- Nasdaq Comp -1.9%
- Russell 2000 -1.1%
- DJIA -1.1%
- Toronto TSX Comp -0.5%
