Bottom Falls Out Of Tech Sector

The three major indexes were split today, as the Dow posted gains while the NASDAQ and S&P 500 ended trading in the red. The Dow posted gains of 56.32 points today, and closed at 17,946.68. The NASDAQ dropped on a weak tech sector, falling 31.68 points to close at 5,080.51. The S&P 500 was essentially even on the day, falling just 0.82 points to 2,101.49.

Tech Drops Like A Rock

The big news in trading today was the way that the bottom fell out of the tech sector, stranding the NASDAQ and leading to losses across the board.
Segments across the entire sector were down in trading today, from chipmakers and electronics to software and networking. The entire sector slipped downward throughout the trading day. This fall is what ultimately lead to the NASDAQ's losses for the day. Stocks like First Solar (FSLR), Multi-Fineline Electronix (MFLX), Tessara (TSRA), and even Intel (INTC) all contributed to the NASDAQ's fall today. The NASDAQ is a tech-heavy exchange, which makes it resilient and profitable when the market is bullish, but it tends to be volatile when times are tough. The drop in the tech sector was caused by many different things. Some of the problem is falling consumer spending on big-ticket electronics and computers. The American marketplace is also going through a fundamental change, away from desktops at home and more toward devices, with companies like Apple (AAPL) capitalizing on the shift. The marketplace is growing as well, with China's middle class eager for brand-name phones, computers, televisions, and other electronics. Ultimately, tech is set to be volatile for awhile -- certainly through the summer -- but that means there are deals to be had as well as dollars to be lost.

McDonald's (MCD) Up Big Despite Franchise Sales

Despite reports of an ongoing liquidation of over 400 franchise locations in Hong Kong, McDonald's (MCD) stock was hot today.  Share prices rose on investor confidence that McDonald's is going to continue to have a great summer, one that will help it break out of the profit and revenue slump that it's been trapped in. Shares of McDonald's stock rose by 1.50 points today, and closed at $97.29.

Nike (NKE) At An All-Time High

Shoe and clothing manufacturer Nike (NKE) had a great day in the market. The company posted over 4% gains, and saw share prices rise 4.49 points to close at $109.71. Nike ended today's trading at an all-time high for the stock. The company has been beating earnings reports and sales forecasts regularly, and is currently rated a ‘buy' by the majority of analysts.
Published on Jun 26, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

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