The markets showed some weakness today as the Dow 30 closed lower by 19, the S&P 500 sold off 6, and the Nasdaq closed lower by 26. Many technical traders see this as a welcome pullback in the short-term given the recent strength from December lows.
Sector News
Semiconductors were one of the bright spots today that supported the markets through a larger loss. Names like Nvidia (NVDA ), which added about 3%, helped the semiconductors break through the 200-day moving average.
Many of the short-term overbought sectors took a break today following some impressive rallies since the start of the year. REITs were one area that pulled back a bit after an amazing run from December lows. Communication Services and Homebuilders were a few other areas that saw small pullbacks.
Stock News
Disney (DIS ) shares started the day higher as the company reported a nice beat on earnings ($1.84 vs. $1.55), along with revenue. The company reported high park attendance here in the states, success in adding more subscribers than expected added to ESPN Plus, and strong results out of its ABC network, among other areas that performed well. Technical traders noted the gap higher into the downtrend line which acted as resistance.
Snap Inc. (SNAP ) shares blasted off today as the company announced a loss that was less than expected (0.04 vs. 0.08) thanks to stronger-than-expected revenue. Daily active users came in about the same, which impressed analysts who feared the user base was moving on to other platforms. Raymond James upgraded the stock from underperform to market perform. There are currently 9 other analysts with a sell rating and 4 with a buy.
Electronic Arts (EA ) shares broke down hard today as the company reported better-than-expected earnings but lower revenue than Wall Street was expecting. The company lowered their revenue forecast for the year thanks to increased competition. The CEO took to the airwaves to combat investors, saying "they got it wrong" in an attempt to stop the negative bias.
