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All Sectors Suffer in Nasdaq's Worst Day Since August 2011


Today's financial recap and tomorrow's financial outlook.

US stocks erased the prior two days of gains in today's session, and then some. The NASDAQ-100 (INDEXNASDAQ:NDX) fell 3.10%, recording its worst day since August 2011, according to Bloomberg. The Nasdaq Biotechnology Index (INDEXNASDAQ:NBI) also recorded similar losses. Recently, beaten-down tech stocks such as Workday (NYSE:WDAY), Splunk (NASDAQ:SPLK), FireEye (NASDAQ:FEYE), and NetSuite (NYSE:N), as well as the 3-D printing sector, all suffered jarring technical breakdowns following Tuesday's reversal. However, unlike the recent sell-offs, no sector was safe from weakness.

All 10 basic sectors of the S&P 500 (INDEXSP:.INX) declined in today's trading, led by health care, tech, and consumer discretionary. The outperformers were the utilities and telecom sectors, which declined 0.40% and 0.36%, respectively. Despite a decline of greater than 2%, the CBOE Volatility Index (INDEXCBOE:VIX), which tracks volatility on the S&P 500, only rose 2.07 points to 15.89. Of the 101 stocks in the NASDAQ-100 index, 100 of them declined, and down volume accounted for 93.2% of total volume on the Nasdaq exchange.

Weekly initial jobless claims fell to 300,000 from 332,000 in the week prior, the lowest level since May 2007. Economists had expected 320,000. The US posted a federal budget deficit of $36.9 billion, the smallest for the month of March since 2000.

Treasuries rose strongly today as investors rotated out of risk assets and into safe-haven assets. The 10-year yield dropped six basis points to 2.63%. The Treasury sold $13 billion of 30-year bonds at a high yield of 3.525% to strong investor demand.

eBay (NASDAQ:EBAY) announced this morning that it reached an agreement with Carl Icahn to end their proxy fight. eBay will add David Dorman of Centerview Capital Technology to its board of directors as Icahn suggested. However, eBay did not honor Icahn's request for a sale of its PayPal unit.

Tomorrow's Financial Outlook

Two pieces of economic data are scheduled to be released tomorrow morning: the producer price index of final demand in March and the preliminary April University of Michigan/Reuters consumer confidence index. The index is expected to decline slightly to 81.0 from 81.5 last month. The most important events of the day will likely be the earnings reports from Wells Fargo (NYSE:WFC) and JPMorgan (NYSE:JPM), which are both scheduled to report in the pre-market.

China will release its March consumer and producer price indices overnight. Also scheduled for release is Germany's final estimate of March CPI and the UK's construction output.

Twitter: @Minyanville

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No positions in stocks mentioned.

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