All that I could think of yesterday for most of the session was the Boomtown Rats’ song “I Don’t Like Mondays.” They were shooting the whole day down.
A Day of Pain and Pleasure But Mostly Pain
A positive opening quickly brought on the tech and growth haters who sold the market off hard. Eventually buyers stepped up to drive the markets back into the green, but it was not fun. NASDAAQ and small cap stocks ended in the red but well off the lows of the day. It seems that every time the bears get a little traction, the smart large money pool managers put their bundles of cash back to work. Still, by the end of the day, there was still pain to be felt for the growth oriented investors and pleasure for the value/dividend crowd.
Apple Surges BofA Reneges
Apple (AAPL) was the star performer; rising nearly 4% for the session, making that new 52-week high that I expected and closed about 6 points within $600. Bank of America (BAC) was the goat; declining over 6% as the company was forced to renege on its plan to raise dividends and buyback shares after making a mistake on its capital calculations included in the recent banking stress test.
Buffalo Wild Wings (BWLD) was a winner in the growth stock arena rising 5% after hours in reaction to better than expected earnings results and increased forward guidance. Today earnings season continues with companies of interest such as: 3D Systems (DDD), Archer Daniels Midland (ADM), Bristol Myers Squibb (BMY), EBay (EBAY), Coach (COH), Marriot (MAR), Seagate (STX) and US Steel (X) all set to report.
Is the growth sell-off getting long in the tooth? Perhaps it is, but the proof will be in the pudding. If Apple can turn from laggard into leader as it is trying to do then we might finally get money flowing back into techs and NASDAQ in general for more than just one session, or part thereof.
You can find my interview on Bloomberg Radio from last Friday on site’s On The Radio Page. It is the last thumbnail on the bottom.
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Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long AAPL, BAC and BWLD — although positions can change at any time.
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Read Scott’s intra-day thoughts and comments on Scutify
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