|The Dow Jones Industrial Average for the week|
Wall Street took a dive Tuesday turning negative for the year.
Target led the way after reporting weaker than expected earnings for the previous quarter
The 30-Stock Dow fell 450 points after dropping nearly 400 points in the previous session. Earlier in the day, the Dow was down nearly 600 points. The S&P 500 dropped 1.3 percent, but also traded well off its session lows. The Dow and S&P 500 were up 1.2 percent and 0.6 percent, respectively, for 2018 entering Tuesday.
Target fell 10.4 percent after reporting weaker-than-expected earnings for the previous quarter. The company also posted lighter-than-forecast same-store sales, which is a key metric for retailers.
Tuesday’s decline came a day after members of the popular “FAANG” trade —Facebook, Amazon, Apple, Netflix and Google-parent Alphabet — all closed in a bear market, down more than 20 percent from their 52-week highs. The S&P 500 and Nasdaq dropped 1.7 percent and 3 percent, respectively, on Monday while the Dow fell 1.6 percent.
Experts point to Donald Trump’s trade wars, a slowdown in the global economy and the recent cloud that’s hung over Big Tech stocks for the decline.
That said, most say the actual fundamentals of these stocks are solid, but that doesn’t seem to matter to investors today.
Stocks are opening sharply lower on Wall Street as a rout in major technology companies continued.
— ABC News (@ABC) November 20, 2018
When Wall Street wipes out a year’s gain, Donald has nothing to brag about it. His recession is starting. https://t.co/oeka7LSklW
— Barbara Malmet (@B52Malmet) November 20, 2018