Stocks are volatile on Friday after a surprisingly weak non-farm payroll report. Only 160,000 jobs were created, down from the 215,000 last month and the 200,000 analysts were expecting. Moreover, the unemployment rate held steady at 5%.
The major averages are looking vulnerable here as the Dow Jones Industrial Average threatens to fall below its 50-day moving average for the first time since late February.
The tech-heavy Nasdaq Composite has been hit worse, already below the 50-day moving average to return to early March levels.
Investors should keep an eye on these three Big Tech heavyweights at risk of fresh breakdowns if economic disappointment translates into further stock market weakness.
Big Tech Titans Crashing: Apple Inc. (AAPL)
Apple (AAPL) is at risk of falling below its August-January-February lows as investors continue to lose faith after a terrible quarterly earnings report featuring a first-ever drop in iPhone sales.
CEO Tim Cook’s appearance on CNBC’s Mad Money to promote the Apple Watch didn’t have an impact. And early indications are that the eagerly anticipated iPhone 7 launch later this year will actually be merely an incremental upgrade to the existing iPhone 6/6s form factor.
A breakdown here would return shares to mid-2014 levels. Edge Pro subscribers are enjoying a near 290% gain in their May $107 AAPL puts.
Big Tech Titans Crashing: Intel Corporation (INTC)
Intel (INTC) tested below its week-long consolidation range on Friday as shares of the chipmaker continue to languish below its 200-day moving average.
This caps a long sideways crawl going back to the summer of 2014 as the consumer PC market remains in the doldrums (despite the Windows 10 launch coming and going) and new initiatives around cloud-based computing and the Internet of Things hasn’t grown enough to move the needle.
Edge Pro subscribers are enjoying a 125% gain in their May $31 INTC puts.
Big Tech Titans Crashing: Microsoft Corporation (MSFT)
Microsoft (MSFT) shares are trading at the lower end of a consolidation range going back to last October as excitement over new management and a fresh focus on software-as-a-service and cloud computing has given way to a realization that these new initiatives aren’t yet large enough to compensate for a slowdown in Windows/Office software-as-a-product revenue.
Edge Pro subscribers are holding a position in the May $50 MSFT puts.