U.S. equities are suffering from the largest intra-day pullback since May, with the Dow Jones Industrial Average down nearly 500 points on Friday.
The catalyst is a deepening breakdown in Treasury bonds, pushing up yields in the wake of a surprisingly strong non-farm payrolls report. Payrolls jumped by 200,000 vs. the 175,000 gain expected. And the unemployment rate held at 4.1%. But wages jumped to the upside, with average hourly earnings rising at a 2.9% annual rate.
This is fueling inflation concerns and hitting stocks hard, pushing the Dow below its 20-day moving average for the first time since November. Tech stocks, which have been momentum darlings in the market for months, are taking it particularly hard.
Here are five tech stocks breaking down right now:
Tech Stocks Breaking Down: Alphabet (GOOG)
Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) shares are down more than 5% after the company reported results on Thursday. The company missed earnings-per-share estimates by 37 cents despite beating on revenues on margin pressure. Investors looked past the announcement of a $8.6 billion share buyback program.
Analysts at Stifel downgraded the stock to hold on concerns including competitive pressure from Amazon.com, Inc. (NASDAQ:AMZN) and others, higher regulatory risk, and concerns about operating leverage.
Tech Stocks Breaking Down: Apple (AAPL)
Apple Inc. (NASDAQ:AAPL) shares are down 4%, closing in on their 200-day moving average for the first time since the summer of 2016. This comes after disappointing quarterly results confirmed demand-side issues with the iPhone X. Earnings actually beat estimates by 4-cents-per-share, but iPhone shipments totaled just 77.3 million vs. the 81.5 million estimated and 78.3 million in the year-ago period.
Analyst downgrades followed, including markdowns from KeyBank and Bernstein. Furthermore, reports of reduced production guidance into the supply chain dampened enthusiasm earlier in the week.
Tech Stocks Breaking Down: Nvidia (NVDA)
Nvidia Corporation (NASDAQ:NVDA) shares are suffering the rare indignity of touching their 200-day moving average on Friday; rare because the stock has been a relentless momentum performer thanks to its exposure to cryptocurrencies, autonomous transportation and machine learning. But now, broad market selling has hit the name as well, violating a two-month uptrend channel and setting the stage for a decline back to the 50-day average.
The company will next report results on Feb. 8, after the close. Analysts are looking for earnings of $1.16-per-share on revenues of $2.6 billion. When the company last reported on Nov. 9, earnings of $1.33-per-share beat estimates by 26 cents on a 31.5% rise in revenues.
Tech Stocks Breaking Down: Applied Materials (AMAT)
Applied Materials, Inc. (NASDAQ:AMAT) shares are on the verge of their first major selloff in three years, losing uptrend channel support after bonking on a multi-month double-top pattern. This after competitor Lam Research Corporation (NASDAQ:LRCX) reported downside guidance that popped the sentiment bubble in the semiconductors space.
The company will next report results on Feb. 14, after the close. Analysts are looking for earnings of 97-cents-per-share on revenues of $4.1 billion. When the company last reported on Nov. 16, earnings of 93-cents-per-share beat estimates by 3 cents on a 20.4% rise in revenues.
Tech Stocks Breaking Down: Lam Research (LRCX)
Like AMAT, Lam Research, has been enjoying a powerful uptrend over the last few years on the seemingly infallible thesis that the Internet of Things will always and forever increase demand for processors in everyday items. But there is a limit to these things. And it seems to have been hit.
The company reported better-than-expected earnings and revenues on Jan. 24, but guidance disappointed the whisper numbers and sent shares reeling on a sell-the-news dynamic.