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Fortunes Diverge, Tech Sags as Dow Jones Hits New Record

EQUITIES
  • Markets diverged sharply Monday, with tech and communication services names falling sharply while the Dow Jones extended recent outperformance to strike a new all time high. The e-mini NASDAQ fell close to 2%, with big name tech firms including Facebook, QUALCOMM, Tesla and Paypal off 3% or more.
  • The index turned toward first support at last week's Tuesday/Thursday lows, which come in just ahead of the 50-dma at 13,365.
  • Tech weakness occurred for a number of idiosyncratic reasons, with QUALCOMM hit following reports that Apple will bring modem production in-house, while Facebook and Alphabet slipped after downgrades at Citi.
  • Perhaps unsurprisingly, the tech and comm services sectors were at the bottom of the pile for the S&P 500, while utilities and consumer staples made decent headway.

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