Weak Dell Earnings Weigh On Tech Stocks
The market is lower today, after weaker than expected earnings from DELL weighs on the tech sector, and some weak reports from homebuilders weigh on that sector. Of course, the dollar is bouncing today and we know that rarely do stocks and commodities rise when the dollar is up lately.
Healthcare stocks are bucking the weakness so far, as investors rotate into safety stocks. Energy stocks are the next weakest sector after homebuilders and semis.
The higher dollar is weighing on commodities also, pushing oil prices down to $76.20 and gold down to $1139.
Asian markets were lower overnight; the 10-year is roughly flat at 3.34%; and the VIX is marginally higher to 22.90, which isn't really signaling that traders expect more large selloffs.
Trading comment: The market has basically worked off its overbought condition, although many leading stocks are still correcting and forming small bases. Next week is often a strong week in the market, surrounding the Thanksgiving holiday. I am continuing to pick my spots and add to areas like tech, medical and biotech, and select energy and commodity names.
There are a lot of talking heads still calling for the "long awaited correction", but I would argue that the pullback from mid-October to early November satisfied the need for a correction, and this is just normal choppiness.