What started out as a great day for the market quickly turned into a poor one by the time the closing bell rang. Down from a peak of 3,021.99, the S&P 500’s close of 3,006.76 was almost a dead breakeven.
Blame cigarette giant Altria Group (NYSE:MO) and entertainment icon Disney (NYSE:DIS) for the broad lethargy, at least more so than any other name. Altria shares fell nearly 2% on the growing realization that vaping isn’t going to offset the headwind traditional tobacco usage is facing, while Disney slumped 2.5% after Imperial Capital analyst David Miller cautioned that its film arm could prove a lackluster profit center going forward.
Microsoft (NASDAQ:MSFT) deserves most of the credit for keeping the S&P 500 out of the red yesterday. It ended the session up nearly 2% on the heels or report it was upping its buyback plans and raising its quarterly dividend to 51 cents per share.
Seagate Technology (STX)
Seagate Technology shares took a hit on Thursday after raising its fiscal Q1 earnings guidance without upping its revenue outlook. The market was expecting more on both fronts though. Most investors chalked up the tumble to nothing more than that, and perhaps that’s all it was.
Sometimes though, it’s a headline that prompts a technical move that was trying to take shape anyway. That’s arguably what happened with STX stock yesterday, putting into motion what is very likely to turn into a sizeable downtrend.
The last time Weyerhaeuser was on the radar back on Sept. 3, it was knocking on the door of a breakout move, but that door had not yet opened. Specifically, the upper boundary of a converging wedge shape was being attacked from below, and a handful of hints suggested it was only a matter of time before that bullish move took shape.
It has panned out as expected in the meantime. In fact, a different technical ceiling that was only on the horizon then has also been hurdled. Although overextended now, the move itself makes a recovery more likely, and likely to be more rewarding than WY stock has been since early August.
Expedia Group (EXPE)
Finally, Expedia Group is no stranger to big swings. It has been all over the map since the middle of last year, even more so than most stocks. That’s just the nature of travel-related names, which are not only cyclical, but subject to the rapid changes in the price of crude oil (which subsequently changes the cost of traveling).
There’s actually been a clear method to the madness, however, that suggests the current rally effort has more backing than it may seem on the surface. One more good nudge may well do the trick, as long as the economy does its part and remains robust.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley.