After Market: High Tech Dives Lower, Drags Everyone Down

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The stocks we used to refer to as high-fliers spent most of Friday getting shot down. In the first few minutes of trading, the Dow and the S&P edged into record territory, but then the market turned lower with a vengeance. The Nasdaq took the biggest hit, sliding 2.5 percent, one of its worst days in the past two years.

The Dow Jones industrial average (^DJI) fell 159 points, the Nasdaq composite (^IXIC) tumbled 110 and the Standard & Poor's 500 index (^GPSC) lost 23 points.

Many of the technology and biotech stocks that led the Nasdaq to big gains over the past two years were among those leading the decline.

Facebook (FB) fell 4 percent. It's now lost 17 percent in the past month.
Google (GOOG) and Netflix (NFLX) also lost more than 4 percent on the day. And Amazon (AMZN) dropped 3 percent. Over the past three months, it's down 18 percent.

The online travel companies Priceline (PCLN), Expedia (EXPE) and TripAdvisor (TRIP) had a rough day. And the Internet retailer Zulily (ZU) dropped 9 percent.

All of these stocks are referred to as momentum plays. On the way up, their big gains brought in more buyers. But now that momentum is working in reverse.

And it's not just new tech that's under fire. Microsoft (MSFT) fell 2.5 percent, while Cisco Systems (CSCO) and Adobe (ADBE) lost more than 1 percent.

Chipmaker Micron Technology (MU) dropped 6 percent, even though its quarterly results beat expectations.

As for the biotechs, the iShares ETF (IBB) tumbled 4 percent. The list of losers is long, including Celgene (CELG) and Biogen (BIIB) fell down 4 percent; Jazz Pharmaceuticals (JAZZ) and Illumina (ILMN) lost 7 percent each.

And Halozyme Therapeutics (HALO) plunged 27 percent after the company halted enrollment in its study of a drug to treat pancreatic cancer.

Elsewhere, E-Trade (ETFC) slid another 8 percent. With all of the hullabaloo over high frequency trading this week, there's concern about new regulations that could cut into the firm's trading volume.

The big winners of the day were a trio of initial public offerings. The food delivery firm GrubHub (GRUB) jumped 34 percent from its IPO price. Energy software company Opower (OPWR) rose 21 percent. And IMS Health (IMS) rose 17 percent from its initial pricing.

What to Watch Monday:
  • The Federal Reserve releases consumer credit data for February at 3 p.m. Eastern time.
-Produced by Drew Trachtenberg.


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k.tv

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April 06 2014 at 2:26 AM Report abuse rate up rate down Reply
SPQR

The Nasdaq had its best day in 2 years! massive profits were taken and that is what it is alla bout!
The winners are sipping wine tonight to celebrate their good fortune !
If you didn't sell then it was not so nice if you just bought in...get over it !

April 04 2014 at 11:59 PM Report abuse -1 rate up rate down Reply
fred

What? We build a financial house of cards on a sandy beach and it may come crashing down in a windstorm/flood? Get out of town!!

April 04 2014 at 10:12 PM Report abuse +1 rate up rate down Reply
elendil3136

Nice. I've been sitting on a large cash position waiting for a major downturn.

April 04 2014 at 9:41 PM Report abuse +1 rate up rate down Reply
SPQR

There has been no real job formation at all. Some of the types of jobs have changed. First, official government statistics confirm that 10,000 boomers have been retiring every week for almost the last 4 years. Guess what? That is the same number of jobs that have been created over the same time period. Those numbers do not include the millions of lay offs. In other words all new jobs were just to replace the ones who retired and does not count those who lost their jobs.
Someone tell me why we want to so agressively give amnesty to 20 million unskilled illegals. I can't believe it is for votes because both parties basically want it to happen. Has our government gone mad!!!

April 04 2014 at 8:19 PM Report abuse +3 rate up rate down Reply
jwmgrand

GOLD puts on 20.5 points like a walk in the park ..... yeah its really a bull market run .... not a chance ....... all the news is horrible ... and the dazed deer just sit their watching what they told you ( the stock that was the Real Utopia ) get hammered into submission ...... 90% of the ( Star ) stocks have run out of gas .... and just getting towed by the Fed waiting for the next free tank of gas ... in the meantime ....... we head up in the morning and down at the close ... traders judging the wheat from the chaff ....... what gets kept and what gets tossed ... Gold just sits their saying ....... you got nothing ...!

April 04 2014 at 8:18 PM Report abuse -1 rate up rate down Reply
czimmer383

The big investors did this to us. Drive the market up, then the account executives call us retail buyers and encourage us to buy on the momentum. Then the big investors take their profits and we lose.
The next time your account executive calls at a high, tell him to call back during a correction. I did and he was not happy that I caught on to what he is doing.

April 04 2014 at 7:10 PM Report abuse +2 rate up rate down Reply
1 reply to czimmer383's comment
kolblh

I do better being my own financial advisor. My money, my call. I've done better by myself.

April 04 2014 at 7:20 PM Report abuse +1 rate up rate down Reply
jdykbpl45

The Obama record on job formation is lousy, therefore the economy is lousy. Go Obama, anywhere
but here!

April 04 2014 at 5:44 PM Report abuse -4 rate up rate down Reply
2 replies to jdykbpl45's comment
Steve

If you pay any attention to facts e.g…housing, financial service industry, American auto industry, corporate earnings, stock market, and on and on and on, you would know that the economy is much better than under the last guy. Perhaps in middle school, you will be able to figure that out.

April 04 2014 at 6:36 PM Report abuse -1 rate up rate down Reply
ectullis

BTA would be OK

April 04 2014 at 7:10 PM Report abuse rate up rate down Reply
militiaman2013

Wow AOL can even make it's website run correctly and their out here giving advice LMAO.

April 04 2014 at 5:04 PM Report abuse +1 rate up rate down Reply
militiaman2013

More worthless IPO's so the Greedy can multiply their Billions $$$ and all happening in an artificial bubble- manipulated Market.

Now that the middle class has been destroyed what will Wall Street destroy next?

April 04 2014 at 5:04 PM Report abuse +2 rate up rate down Reply
1 reply to militiaman2013's comment
Steve

When you get to high school, take an economics course. The stock market has more than doubled since W left office because corporate earnings have more than doubled!

April 04 2014 at 6:48 PM Report abuse +1 rate up rate down Reply
2 replies to Steve's comment
SPQR

Yes that happened because they layed off millions of workers and moved jobs overseas. If you are rich and invested i the market you are probably richer. I doubt that the millions who lost their jobs were investing

April 04 2014 at 8:23 PM Report abuse +2 rate up rate down
gambitgolfer

You might want to sit next to him in class, corporate profits are at the expense of job creation, fortune 500 company i work for keeps asking for more and more with less people, less payroll, more profit. Most definately at the cost of the middle class.

April 04 2014 at 8:48 PM Report abuse +1 rate up rate down