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The result: Some traders who stepped in to scoop up shares in late October, hoping for a quick rebound, are now in danger of losing those potential profits and more. That puts the stock market in a tenuous position, several said.
“The buy-the-dippers are getting concerned. Now we’re going to see how much of the rebound was real buyers versus renters that were just trying to buy the dip,” said Justin Wiggs, managing director in equity trading at Stifel Nicolaus. According to his calculations, as of this morning about 16% of S&P 500 companies are now below their October lows.
Trading - S - P - % - Dow
In recent trading, the S&P 500 dropped 1.9%, the Dow Jones Industrial Average fell 2.1%, or 546 points, while the Nasdaq Composite declined 2.4%, putting all three on track to close in the red for the year. The Nasdaq closed Monday below its Oct. 29 low, while the S&P 500 and Dow industrials slipped Tuesday intraday below their October troughs.
The Nasdaq slumped 3% Monday, closing near a seven-month low, with tech-giant Alphabet slipping into bear-market territory. On Tuesday, while the tech sector declined, it was consumer companies and energy firms leading indexes lower.
Companies - Price - Crude - Oil - %
Oil-and-gas companies tumbled as the price of U.S.-traded crude oil fell 2%. Retailers, recently on the rebound, sunk after Target Corp. said it faced higher costs on supply chain and wages for workers. Shares fell 7.6%.
In Europe, the pan-continental Stoxx Europe 600 index fell 1.4% in early afternoon trading, with the index’s tech sector leading the way down, descending 2.5% to its lowest level in 18 months.
Auto - Sector - Losses - Asia - Renault
Selling in the European auto sector echoed similar losses in Asia. Renault shares dropped 2.6% after Mitsubishi...
(Excerpt) Read more at: WSJ
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