MMR

Stocks Slammed as Tech Sector Slumps

The S&P 500 is headed toward its longest losing streak since November 2016

Managing Editor
Oct 10, 2018 at 12:09 PM
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Stocks are getting gashed today, with the Dow Jones Industrial Average (DJI) down more than 375 points and on track for its worst day since May 29. Tech giants such as Intel (INTC) and Microsoft (MSFT), as well as FAANG stocks like Alphabet (GOOGL) are selling off at a dramatic rate, putting the Nasdaq Composite (IXIC) on pace for its lowest close since early July, and the S&P 500 Index (SPX) on track for its worst losing streak since November 2016.

Traders are also keeping a close eye on the 10-year Treasury yield, which once again has climbed to a seven-year high. Elsewhere, Wall Street's "fear gauge," the Cboe Volatility Index (VIX), has spiked to its highest level since late June.

Continue reading for more on today's market, including:

  • This VIX signal has been hot in 2018.
  • The Dow stock failing to capitalize on a new Amazon partnership.
  • Plus, options traders target Altria; Kohl's stock bounces off support; and Twitter sells off again.

Midday Market Stats Oct 10

 
Altria Group Inc (NYSE:MO) is seeing unusual options volume today, with 24,000 calls on the tape, six times the average intraday pace. Most active is the October 64.50 call, where Trade-Alert indicates new positions are being sold to open. The tobacco stock is up 1.2% to trade at $63.87 today, and has been turned away by familiar technical resistance
 
Kohl's Corporation (NYSE:KSS) is up 3% to trade at $73.03, one of the top stocks on the S&P 500 today. The retail stock raced to a record high of $82.42 on Sept. 12 after flashing a reliable bullish signal. A late-September pullback ensued, but the shares seem to have found support near their 160-day moving average. Overall, KSS is up 33% in 2018.
 
MMC Daily Chart KSS

 

Twitter Inc (NYSE:TWTR) is struggling today, down 7.7% to trade at $27.00. Last week, a hedge fund closed out its stake in the social media stock, which had been consolidating near the $28 level in recent weeks. But while TWTR is heading toward its sixth straight weekly loss, it still boasts a 12.7% lead in 2018. 

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
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