Before the bell gets ringing today, you should check out this quick summary of yesterday’s interesting market activity from Dan Greenhaus at BTIG.To preface it, we’ve talked a lot over the past several days about the decline in Apple shares, and yesterday the selling got really intense, with the stock down 4 per cent.
But it wasn’t just Apple, and other parts of the market were unusually strong.
High fliers beware! As we noted in last evening’s Bedtime with BTIG, several important well owned names have not been acting well and while Dow finished in positive territory and the S&P 500 modestly negative, there were meaningful drops in AAPL (-4.15%), PCLN (-4.5%), GOOG (-3%), NFLX (-2.9%), CMG (-1.9%), MA (-1.77%) and V (-1.9%). Over in energy, which was negative on the day, every name in the OSX was lower helping to negatively offset strength in the all important integrateds (XOM, CVX and COP were all up on the day). Financials traded lower from 2:00 on (still managed to finish as the second best sector) helped by strength in the REITs and a near 2% jump in C’s price after earnings. On the positive side of things, Transports outperformed, as did Semis, while the Russell 2000 eked out a green day.
Transports, semiconductors, and small caps all rallying — usually signs of economic confidence.
Then you have the carnage in the high-flyers.
There might be something to this “rotation” thesis, the idea that investors (for whatever reason now) are engaged in some kind of big rebalancing.