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Dow Higher as Tech Eases From Lows, Cyclicals Shine

Published 09/11/2020, 01:21 PM
Updated 09/11/2020, 03:40 PM
© Reuters.

By Yasin Ebrahim

Investing.com – Wall Street eased from session highs on Friday as big tech eased from lows and cyclical sectors like financials and industrials climbed.

The Dow Jones Industrial Average rose 0.56% or 154 points, but had gained as much as 294 points at the highs of the day. The S&P 500 was up 0.08%, while the Nasdaq Composite slipped 0.70%.

The tech wreck that began earlier this week continued, led by weakness in the Fab 5. Facebook (NASDAQ:FB) Alphabet (NASDAQ:GOOGL) Amazon.com (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) trading in the red.

Apple came under added pressure after JPMorgan raised concerns about slowing sales ahead of the tech giant's 5G-enabled iPhone slated to launch later this year.

There was “a moderation in momentum" for the lower-end iPhone SE  and a slow down in sales of the iPhone 11, JPMorgan (NYSE:JPM) analyst Samik Chatterjee said in a note, citing surveys from Wave7 Research. 

Adding to worries over Apple's growth, the company on Friday revised its App Store guidelines that will likely directly affect game streaming services ahead of a new iPhone software release later this month.

With tech taking a breather, investors appeared to turn to cyclical stocks, which tend to outperform in a growing economy.

With stimulus from the Federal Reserve expected to continue for a prolonged period, some investors have been making the case that value stocks are ripe for the picking.

"Ultimately, if the Fed is dovish and monetary policy is easy, markets have a backstop. In other words, we must still buy the dip," said Fundstrat Founder Tom Lee said in note Thursday.

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Lee also backed "epicenter" stocks, or those impacted by the pandemic. These stocks "are going to be primary contributors to EPS growth in 2021, thus, we see better risk/reward."

On the earnings front, Peloton Interactive (NASDAQ:PTON) fell more than 3% even as the company delivered better-than-expected guidance and swung to a profit in its fiscal fourth quarter following a pandemic-led jump in sales.

Oracle (NYSE:ORCL), meanwhile, also struggled to advance despite better-than-expected quarter results that beat on both the top and bottom lines.

Energy stumbled to add to broader market malaise as oil prices stuttered on signs that OPEC members' commitment to stick to production cuts are waning after the United Arab Emirate pumped more oil than agreed to under the accord.     

Latest comments

Added some COUP today and a little more AMD. Sold BL. A little gain there. Eased into a bit more TSLA.
Nailed it! Very precarious market today. Investors are starting to see that Trump is as corrupt as ever and that the vaccine he’s touting for November will not be here until well after Biden is sworn in next year.
Apple rule the tech industry in US stock market..are you Ok, author?
Sales of old tech slowed in anticipation of new tech coming out? All I can say is DUH!?! Apple and major investment houses didn't price that in? Please tell me their analysts all got fired.
boy did I get caught in the bull trap today🤦‍♂️
Wow our market must be pretty solid for 1 company ONE single company to drop the index. so much for diversification. so if apple goes under we can kiss the dow good bye? what a joke this market has become. nothing more that a vulgar casino.
sure welcome to Vegas
For Apple to go under US would need to be a commie state lol
what is the future of Apple ? a new Iphone 12. 13. 14 15. 15. ? quite the same. no innovation. I miss you Steeve
Not so much Apple. More of a top out in the 1st week of September. Remember the crash on September 3.
This is what I posted over 2 hours ago when the markets were soaring. I must be a stable genius! “This opening is very precarious. The markets are struggling to get a toehold, because Trump has turned the US economy into a disaster. Wall Street knows had Trump responded sooner to the virus threat, the economy would have been totally opened many weeks ago. This 2-3 month window of economic opportunity would have greatly helped the GDP numbers for the entire year. But instead, due to Trump’s lack of leadership and total disregard for American lives, the second virus wave will be upon us within 3-4 weeks. And this time it will be FAR WORSE than what we’ve experienced the past 7 months, both economically and medically. Not only will a vaccine not be available until early 2021, the distribution logistics will be a nightmare and most people will not get vaccinated anyway.”
And now USA has to choose between Trump or creepy uncle Joe Biden. Great choices. I don't understand why no one wanted Bloomberg, he would have been a good President I think. Also I don't like the thought of China overtaking USA as a financial and economic power, with Trump or Biden, I don't see a chance for a happy ending.
Trump takes on china, how thick headed are you?
You either dont keep up with news on foreign policy or you live under a rock
Dow Jones, Be careful , I am going to decrease your income.Just kidding
Yes JB has promised to raise working class taxes
More like stimulus worries.
Apple worried lol
😂
Jajajaja
Sound like “potato” worries
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