Apple shares are headed toward their worst weekly rout in years
It was a dismal Thanksgiving week on Wall Street, as continued weakness in the tech sector took a toll. A disappointing batch of retail earnings ahead of Black Friday and a continued rout in oil prices only added to the bearish buzz, and despite a brief respite in the selling pressure on Wednesday, all three major benchmarks are headed toward stiff weekly losses . Plus, the S&P 500 Index (SPX) is on track to breach this under-the-radar trendline, which we've found to be a demarcation point between bull and bear markets, while this recently flashed rare sentiment signal points to more short-term weakness.
Tech Stocks Flash Death Crosses
Tech was a key driver in this week's price action, with Apple (AAPL) set for its longest weekly losing streak since 2010 and its biggest weekly loss since April 2016 thanks to ramped up iPhone concerns. In fact, Nvidia (NVDA) joined a pair of FAANG stocks on a list of names that recently flashed "death crosses," though the term may not be as ominous as it sounds.
Target Headlines Tough Week for Retail
Retail stocks shared some of the spotlight this week, as several big names reported earnings ahead of the annual Black Friday shopping event. A negative reaction for Target (TGT) earnings, for instance, put pressure on the broader retail sector -- though several options traders bet on even bigger sector losses over the next few weeks.
Oil Slides to Seventh Straight Weekly Loss
Oil prices got clobbered this week after the International Energy Agency (IEA) warned of unprecedented "uncertainty in the oil markets." The seventh straight weekly decline for crude turned up the heat on energy stocks, too, and sent bearish options premiums spiking on Chevron (CVX).
Trump-Xi Meeting, More Retail Earnings on Tap
Traders will return from the extended holiday weekend to a full slate. In addition to a highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping, the minutes from the latest
Fed meeting are due. Plus, GameStop (GME) -- which is staring down several
bearish headwinds -- is set to continue a busy stretch of retail earnings.