Another day, another dash from tech.
The Nasdaq Composite has outperformed the rest of the market this year, but the preference for the technically heavy index seems to have ended this week. Shortly after opening on Thursday, the Nasdaq Composite was down 1%, while the S&P 500 and Dow Jones Industrial Average each fell by about 0.8%. If the day ends the way it has started, the Nasdaq would underperform the Dow for the fifth day in a row.
It has been a disappointing day for data. China, which saw its economy grow by a cut of 3.2% and topped forecasts for an increase of 2%, but retail trade fell by 1.8% when they were expected to grow. Shanghai Composite fell 4.5%, the biggest fall since February 3. “While many focused on the Chinese better than expected GDP data, the underlying data did not look good, with retail sales in the negative compared to an expected positive number,” writes NatAlliance Securities Andrew Brenner.
The Shanghai Composite fell 4.5% on Thursday, but is still up 11% in the past month. In Europe, the Stoxx 600 was down 0.5%.
The US economic news was also mixed. While retail sales increased by 7.5%, forecasts for 5%, 1.3 million Americans applied for unemployment insurance, more than the 1.25 million predicted by economists. “A decline in the decline in claims applies,” writes Evercore ISI strategist Dennis DeBusschere.
It does not help that Wednesday’s gains, even if they were nice, were not enough to move Dow and S&P from their respective ranges.
A combination of earnings news and credit changes drove movements in individual shares.
Norwegian Cruise Line Holdings (NCLH) has fallen 11.3% to $ 16.42 after announcing it will sell $ 250 million in stock.
Bank of America (BAC) has fallen 3.6% to $ 23.72 after releasing better-than-expected results. Concerns about depreciation and other issues help to explain why the share is trading lower on Thursday morning.
Walt Disney (DIS) has fallen 1.8% to $ 118.71 after cutting to Market Perform from Outperform at Cowen.
Tesla (TSLA) has fallen 2.6% to $ 1,506.33 after registration in California decreased by almost 50%.
Peloton Interactive (PTON) fell 0.9% to $ 62.53 after cutting to Neutral from Buy at UBS.
Write to Ben Levisohn at [email protected]