Weak iPhone X Demand Sparks Selloff In Apple, Leading Tech Stocks – Investor's Business Daily

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The major market averages were drastically mixed early Tuesday, following the holiday-extended weekend. The Nasdaq dropped 0.5%, compared to the S&P 500’s 0.1% decline. The Dow Jones industrial average edged into positive territory. Overnight, a number of Apple (AAPL) analysts lowered their iPhone X shipment projections for the first quarter of 2018, according to Bloomberg, sparking a selloff in shares of the iPhonemaker.

X Among the Dow Jones industrial components, Apple sunk nearly 3%, putting the stock about 4% below a 176.34 flat-base entry after last Monday’s breakout. Shares are back at their 50-day line, where they will seek crucial support.

Elsewhere in the Dow, Wal-Mart Stores (WMT) is approaching a new buy point, rising 1%. The stock is forming a flat base with a 100.23 entry after a strong move

On the downside, Intel (INTC) declined for a third-straight day, falling 0.8%. The stock is about 2% below a 47.40 cup-shaped base buy point after last week’s breakout.

FANG stock Amazon.com (AMZN) drifted just 0.1% lower after the company reported a strong holiday season. Amazon said its Echo Dot speaker and Fire TV Stick with Alexa remote were their best sellers. Meanwhile, more than four million people trialed the Amazon Prime service in one week.

Apple chip suppliers were also under pressure in the stock market today. Skyworks Solutions (SWKS) declined 2.5%, while Broadcom (AVGO) moved down 2.6%. Skyworks has been consolidating since a failed breakout above a 110.71 cup-shaped base. Broadcom had been finding at the 50-day line, where it has been trading since early December, but is now below that level. The stock is back under a 259.46 flat-base buy point.

Meanwhile, OLED-display maker Universal Display (OLED) slipped 5%, but is retaining its 50-day line. The stock is forming a new base, but no proper entry has emerged.

Data storage leader Micron Technology (MU) sold off nearly 5%, as its shares plunged through their 50-day line.

Inside the IBD 50, retailers were on the move higher early Tuesday. Five Below (FIVE) advanced 2% and is extended from a 57.75 buy point. Meanwhile, Skechers (SKX) moved up 1%. Shares are also well-extended from a 30 buy point.

On the downside, Alibaba (BABA) fell over 2%, erasing last week’s gain. The China-based leader continues to consolidate below its 50-day line.

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