Extended Market Thrives As Nasdaq Skids & NVO, TSM, CRWD Are In Focus | Stock Market Today

TL;DR

The extended market is holding up better than the Nasdaq because strength in small caps, healthcare, industrials, and the Dow is offsetting a tech-led pullback. The Nasdaq remains above its 21-day line, while Taiwan Semiconductor’s weak guidance is pressuring chips and Novo Nordisk and CrowdStrike show notable technical action. Read on for the index analysis, sector trends, and stocks in focus.

Transcript

thank you foreign good afternoon everyone and welcome to stock market today it's Ali Corman Ed Carson here with a look at the action in today's session Thursday July 20th now we're actually recording this at 11 A.M Pacific 2 p.m Eastern a little bit before the closing bell uh but still a lot to analyze today the day after we got those earnings repo... Read More

Key Insights

• ✋ The tech sector is experiencing a sell-off due to weak guidance and concerns about high valuations.
• 🎭 The healthcare and industrial sectors are performing strongly, with positive earnings reports and recovering stocks driving the gains.
• 🥹 Small-cap stocks are holding up well, indicating potential resilience in the broader market.

Questions & Answers

Q: Why is the extended market thriving as the Nasdaq skids?

Weakness is concentrated in technology and mega-cap tech, while other parts of the market are holding up better. The Dow is advancing, the equal-weight S&P 500 is roughly flat, and healthcare, industrials, and small caps are showing relative strength.

Q: Is the Nasdaq pullback a major concern?

The hosts describe the pullback as unsurprising because the Nasdaq had become extended after a strong recent gain. It remains above its 21-day moving average, though a decline to that line could put additional pressure on individual stocks.

Q: Why are technology stocks under pressure?

Tesla and Netflix were hit after their earnings reports, contributing to weakness in technology. Taiwan Semiconductor’s weak guidance also pressured the chip sector, while concerns about high valuations added to the sell-off.

Q: Why is Taiwan Semiconductor important to the market?

The hosts suggest Taiwan Semiconductor may be more important than Tesla or Netflix because of its broader impact on chip stocks. Its weak guidance and sharp decline could weigh on other leading companies in the sector.

Q: How is Novo Nordisk performing?

Novo Nordisk is presented as a winner during a session when several technology names are falling. The stock has moved above its 50-day moving average and is showing strong growth.

Q: What is happening with CrowdStrike stock?

CrowdStrike is one of the session’s losers, but it is finding support around its 21-day and 50-day moving averages. The stock has experienced volatility, making those support levels important to watch.

Q: Are small-cap stocks holding up during the market decline?

Small caps are down during the session but remain higher for the week. The Russell 2000 ETF is also well above its 10-day line, which the hosts characterize as a strong position.

Q: Which market sectors are showing strength?

Healthcare and industrial stocks are performing well, supported by positive earnings reports and recovering names. The Dow is also advancing, while the S&P 500 is holding up better than the technology-heavy Nasdaq.

Summary & Key Takeaways

• The NASDAQ and S&P 500 are both down, with the NASDAQ experiencing a decline of more than 1.5% and the S&P 500 down around 0.4%.

• Small-cap stocks, represented by the Russell 2000 ETF, have gained about 1.7% for the week, although they are down slightly for the day.

• The tech sector, represented by the SMH ETF, is down 2.8%, while the healthcare sector, represented by the XLV ETF, is performing well.

• Key stocks to watch include Novo Nordisk, which has broken above its 50-day moving average, and CrowdStrike, which is finding support around its 21 and 50-day moving averages.

• Taiwan Semiconductor, an important stock in the chip sector, is down nearly 5% on weak guidance, potentially impacting other leading stocks in the sector.