Scott Redler: Yesterday the market performed a little bit of sleight of hand. While everyone was supposed to be watching the Twitter Inc (NYSE:TWTR) IPO, the real action came to the downside in several indices and momentum stocks.
The Nasdaq and Russell led the decline yesterday, as several European markets also got hit hard. Earlier in the week we had noted some divergences in the market, but the indices had been able to hold higher. The Russell flashed a warning sign on 10/30 and then the Nasdaq on 11/06. Many high beta tech names were lower Wednesday as the Dow notched new highs, and then yesterday the damage spread. Lots of clues that some
The 8:30 jobs numbers are out and stronger than expected, which, in this twisted environment, is bad news. Yesterday, good news about GDP also contributed to the down move as taper talk was reignited. Today’s strong jobs report will only make that talk grow louder, combined with a surging dollar thanks to the ECB rate cut. S&P futures are currently down 7-8 handles.
The headlines are funny about Twitter – “Twitter Soars 70+% in