Covid in China, war in Europe and changing perceptions about the invincibility and massive ownership of Big Tech companies are reasons slated for the plunge in the NASDAQ.  The five-day 8.3% plunge is even causing the most ardent large cap growth investor to question one’s rationale.  Year to date the NASDAQ is down 20.2% and 23% from its November apex.

Many are concluding the increased lockdowns in China will create even more supply chain issues.   Yesterday’s announcement that Russia will halt gas sales to Poland may further strain energy supplies and is viewed as a major escalation.

Commenting about yesterday’s economic data, orders for durable goods—items meant to last at three years—rose more than anticipated.  Moreover, the prior month was revised higher.

Regarding consumer confidence, the current conditions index was nominally lower than expected because of inflation but the Expectations Index rose more than expected because of the strength of the job market and home prices.

After the close both MSFT and GOOG posted results.  GOOG disappointed on lack luster YouTube Ad sales, the result of increased competition sending shares down over 4.5%.  MSFT exceeded expectations and shares are higher by 4%.

What will happen today?  Meta’s results are released at the close.

Last night the foreign markets were up.  London was up 0.82%, Paris up 0.70% and Frankfurt up 0.34%.  China was up 2.49%, Japan down 1.17% and Hang Seng up 0.06%.

Both NASDAQ and Dow futures are about 1% higher on a calmer sentiment than morning’s past.  Oil is up about 1%.   The 10-year is off 11/32 to yield 2.77%.


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