The markets sold off hard today with tech names leading the way. The Dow 30 closed lower on the day by 818 points, the S&P 500 sold off 94, and the Nasdaq 100 closed lower by 315 or 4.08%. Investors expect volatility to continue as earnings season officially gets started on Friday.
Sector News
Oil prices fell 2% today, helping pull the overall markets lower. Prices came in weak despite news of continued reduction in Iran's exports, which fell further in the first week of October. Investors taking off risk during this decline is what has caused a spillover effect into sectors that previously showed strength.
Semiconductors continued to selloff, losing just about 10% in the last 6 trading days. The sector lost 4% today as investors continue to take risk off early in the month. Since hitting a high back in March, the sector is down by over 15%.
Transports (IYT ) fell back towards their trendline support today, losing about 4% as investors increased their selling pressure when the sector cut below the 200-day moving average. The decline in just the last few weeks is rapidly approaching the 10% level.
Stock News
Sears Holdings (SHLD ) shares are all but gone now as the Wall Street Journal reported they have reached out to banks for help with their bankruptcy filings and financing. The report suggests that the filing could come before the end of the week.
McDonalds (MCD ) shares were slightly higher today as the company was upgraded to buy at Guggenheim Securities. The company cited an attractive valuation relative to its peers and put a price target of $200 per share in the next 12 months.
Shares of Nio (NIO ) continued their push higher today, adding 6% as it was announced that Baillie Gifford, a major Tesla (TSLA ) investor, has taken an 11% stake in the Chinese electric car maker. Shares of Nio have sold off to their IPO price levels but this news has helped put a temporary floor in.
