Some of the biggest names are leading the market lower today on concerning price action
The Nasdaq is down 1% today after earlier trading higher.
Beneath the surface it's more of a divergent look with some wide dispersion in the winners and losers. Many of the biggest names in the index are at the bottom:
- GOOG -5.6%
- AMZN -4.4%
- AVGP -3.75%
- NFLX -5.5%
- MSFT -2.5%
- META -2.2%
- NVDA -0.9%
- SPCX -10.0%
If you were to give me those numbers in isolation, I would have expected broad and severe pain in markets. Instead, the 1% drop looks like the normal course of business because a few names are dragging the index higher:
- Micron +5.6%
- Intel +5.1%
- TSLA +1.8%
- CSCO +2.0%
- AMD +1.6%
- AAPL +0.4%
That's left for a strange heatmap with huge spots of red but somehow more winners than losers.
It's tough to tie a narrative to this price action. Is it rotation away from some Mag7 names? The market might be pricing in AI struggles for Google, Meta and Microsoft but the chip name price action suggests something mechanical. The biggest names are struggling (again) and smaller chip names are surging, including memory once again. That doesn't exactly argue for a drop in capex any time soon.
Micron is certainly a name to watch as it reports on Wednesday in what will be a highly-anticipated report from a company that's now worth nearly $1.4 trillion.
What worries me is that a few AI chip-related names (and not even the biggest ones) are carrying the whole market right now with the foundation below them weakening. I'm seeing some real red flags and Wednesday's hawkish FOMC didn't help.
In terms of the broader market, there are some other important looks at the economy via earnings this week. Tomorrow morning, cruise operator Carnival reports and bellwether FedEx reports after the bell.
This article was written by Adam Button at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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