Stocks finished off a big week in quiet fashion with a mild consolidation which is exactly what bulls wanted to work off a near term overbought condition. Quarterly GDP was released in the morning at 2.5% which was not too hold, nor too cold - but at this point any economic data can be explained away as a reason to buy stocks (good data is good, and bad data means more intervention by central bankers). There were a lot of interesting earning reports which we'll dive into later in the piece. For the day the S&P 500 finished down 0.18% and the NASDAQ 0.33%. For the week the S&P gained 1.74% and the NASDAQ 2.28% nearly erasing all of last week's losses.
Tuesday was a roller coaster ride for the market. After gapping down on the S&P 500 to last week's lows near 1370, a furious rally took the index up nearly 20 points just after 11 AM. Then a slow descent happened the rest of the day, highlighted by a drop of 5 points in the closing 45 minutes. In the end the market was actually down from the previous day but up from where it gapped down to. That said, this type of action was unhealthy. For the session the S&P 500 fell 0.4% and NASDAQ 0.7%.
Stocks suffered a rough session Tuesday as the IMF cut its forecast for global growth and cited the potential for a new recession. The S&P 500 fell 1% and NASDAQ 1.5%; however today's drop could not be placed on Apple but a much broader spectrum of selling. Let's start with the NASDAQ chart today as it showcases the major issue.