Stock Slump Drives Dow Below 17,000
Stocks closed the trading day dramatically lower on high volume. Selloffs took place nearly across the board, with each sector posting losses on the day. The Dow was hit especially hard, losing 358.04 points to close at 16,990.69 -- below the 17,000 support point that has been seen as the basement for trading this winter. The S&P 500 lost 43.88 points on the day, and closed out at 2,035.73. The NASDAQ posted the day's biggest real losses, thanks to a spongy tech sector. It fell by 141.56 points, or 2.82%, and closed out the trading day at 4,877.49.
Chip Stocks Tank on an Already Down DayOne of the segments of the Tech sector that was hardest hit today was the chipmakers.
Its competitor Intersil Corp (ISIL) dropped 3% to $10.34 per share today, while fellow competitor Omnivision Technologies (OVTI) fell just under 2%. All in all, today's trading was hardest on the tech sector, and the chipmakers took on the brunt of the downturn.
Tech Being de-FANGed?Tech's notorious FANG stocks -- Facebook (FB), Amazon (AMZN), Netflix (NFLX), and Google (GOOG) -- all had a bad day today. Relative to the market as a whole, these stocks have been over-performing. However, those times might be coming to an end. Facebook had a squishy Q2 earnings report, and it's been having troubles finding ways to make a profit. Amazon is just the opposite, with good numbers and plenty of growth, the worry is that it's overpriced.
It's a similar story for Netflix, which has been posting good numbers and experiencing excellent worldwide growth. Still, analysts are wondering whether or not shares of Netflix (NFLX) might be overpriced at this point. Google (GOOG) is much more difficult to analyze. It should be easier to get a good idea of where the company stands after they reorganize into Alphabet, but for now there are so many moving parts within Google it's hard to get a read on the company as a whole.