AMAT PULLS SOX LOWER
AMAT FALLS... Applied Materials has tumbled to the lowest level since last October. That makes it the biggest percentage loser in the Nasdaq market -- and is weighing on the Semiconductor(SOX) Index as well. As a result, technology is the weakest market sector in morning trading.
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OTHER SOX LOSERS... Three of the biggest percentage losers in the SOX are shown below. All three have gapped down in morning trading. The biggest of the three -- Intel -- has undercut its December low.
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DOW TECH LOSERS... The three biggest morning losers in the Dow are tech stocks. IBM has dropped to a four-week low and is nearing a test of its 200-day average and chart support along its late-December. Hewlett Packard looks a lot worse. That Dow laggard is in danger of breaking its December low, which would complete a "double top" reversal pattern. That would then threaten its 200-day line. Microsoft is by far the weakest of the three -- having already broken chart and moving average support.
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SOX WEAKNESS... The Semiconductor Index is down over 9 points and has fallen to the lowest level in three months. Its falling relative strength line shows underperformance relative to the Nasdaq market. That's usually not a good sign for either one.
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DISNEY IS DOW'S STRONGEST STOCK... Despite its tech losers, the Dow is managing a modest morning gain. The main reason is Disney, which is the top Friday percentage gainer. Other gainers are Boeing, Honeywell, JNJ, and GE.
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KELLOGG LEADS CONSUMER STAPLE BOUNCE... As so often happens when technology is the biggest daily loser, defensive consumer staples are the day's top gainers. So far today, the top consumer staple stock is Kellogg. The daily chart shows the cereal maker bouncing off chart support along its November low.
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