Equities extend drop on negative sentiment; Tech companies under pressure

Chris L
Category:  Financial News
Wall Street is trading negatively on Tuesday as investors are reluctant to take risks amid concerns over the US economy, Donald Trump policies and companies earning reports. 

A weaker than expected earnings report from Target and technology stocks depression are pushing stocks down. Target reported an EPS of $1.09, $0.02 below market expectations. The retailer also missed revenues by $110 million to $17.59 billion.

On the bright side, Target commented in the press release that they are "better positioned for this holiday season than ever before." The retailer also reported a 49% increase in comparable digital channel sales, a 5.3% rise in comparable traffic, and 5.1% more comparable sales in the third quarter.

Target is trading 10% down below $70.00 per share on Tuesday.

Apple and techs stocks under pressure

Technology FAANG stocks have lost over $300 billion this month. Facebook, Apple, Amazon, Netflix and Google-parent Alphabet are under pressure as market sentiment is turning its back to them as they are showing an unexpected weakness in the last earnings reports, but the long-term remains intact. So, the opportunities. 

Shares of Apple are also trading down on Tuesday as investors are digesting Goldman Sachs last cut-price target. Analysts at the financial institution reaffirmed its neutral rating on the company, but it cut its price target to $182 per share, down from $209, its previous target. 

According to Goldman analyst Rod Hall, it "looks like the balance of price and features in the iPhone XR may not have been well-received." Hall also recalled the "weakness in demand for Apple's products in China."

Apple is currently trading at $179 per share, the first time the unit is below $170 since may 2018. 

Amazon is trading down on Tuesday as the pair is testing the $1,500 area and the October 30 low at $1,475. The unit is extending its decline for the second day after a short-lived bounce at $1,550 performed on November 15.

NVIDIA is one of the biggest losers in the market as the stock has lost over 50% of its price in less than two months. Shares of NVIDIA collapsed from October 2 highs at $292.75 to current lows around $135.50. It was not due to crypto mining decline, but bad news on blockchain technology pushed pressure on this champion of mining technology industry. 

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