Friday, December 14, 2018

Splat go equities...

U.S. equities ended the week in emphatic fashion, not in a stylish sense.  The major averages were down around 2% for the day.  There were some spectacular drops among well known names.  JNJ was down 10% on a report about the tainted talcum powder that has the trial bar salivating.  Adobe down more than 7% and Costco approaching 9%, both on disappointing results which did not appear to be any kind of disaster from this perspective.  A fragile market is unforgiving.  Techs broadly fell, with the QQQ down 2.5% and market favorites like Apple, Netflix, and Microsoft down more than 3%.  FB was an outlier, just down fractionally.  Other major stocks down 4% were Amazon and Pepsico.  This is not trivial.

The beleaguered transports were the surprise place to be, with autos and airlines stable, meaning dramatically outperforming.  Ford, GM, Southwest, American, and Delta were around flat, reassuring?  Banks did not fully participate in the collapse while healthcare definitely took its full measure and more.

There is no all clear.  Will cooler minds develop through the weekend or will panic build as investors look to year end reporting.  The market no longer rests on the holidays.  Certainly not this year.  Monday will be telling.


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