The small-cap tracking Russell 2000 experienced a major drop on Monday and the broader markets followed, as it appeared investors were reacting to last week’s record-setting performance with a skeptical eye.
The iShares Russell 2000 Index Fund (IWM) dropped 1.55 percent on the day, as investors bearish on the market’s ability to sustain momentum pulled their money out of smaller growth plays. It was hardly a case of a clear delineation between growth versus blue chip, however, with several large caps ending the day on a downward trend as well.
International Business Machines (IBM) ended the day nearly 2 percent lower, leading the Dow’s loss column. In all, only six of the DJIA’s 30 components ended the day in the black, notably telecom plays Verizon (VZ) and AT&T (T) .
On the Nasdaq, sector darling Micron Technologies (MU) shed 2.59 percent, followed by Electronic Arts (EA) and TripAdvisor (TRIP) . The S&P’s biggest loser on the day was apparel manufacturer Fossil ($FOSL), who dropped a whopping 10.27 percent on a particularly bad earnings outlook.
Results for May 14, 2014
- Standard & Poor’s 500: -.45 percent to 1,889 points
- Dow Jones Industrial Average: -.61 percent to 16,641 points
- NASDAQ Exchange: -.71 percent to 4,101 points
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- Chinese music group Zhang Zhang sang an ode to bitcoin, which probably marks the first time a currency has gotten its own love song.
- Industry analyst Jeff Kagan explains why the two big mergers in the making –Time Warner and Comcast; AT&T and DirecTV –will either both happen, or both not.
- Staying true to their anti-government and anti-taxation ethos, Casey Research extols the virtues of packing up and moving to tax haven Puerto Rico.
- Andy Waldock expects the month of June to be an interesting one for traders, and if history is any indicator, the gains will be reaped mainly by savvy commercial investors.
- George Brooks examines what it will take to nudge the market into a surge or a plunge, saying that investors are eagerly waiting for a major event to kickstart momentum.
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- Former high-flying daily seal site LiveDeal (LIVE) shed even more value, giving credence to assumptions that the tech play’s major gains in the first quarter are highly suspect.
- New contributor Gregory Bergman looks at the death of healthcare stock Telik (TELK) and its last gasp before being shuttled.
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