Tech stocks drop as Wall Street focuses on Trump stimulus
- Wall Street surges to new highs; transports set record
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- After-Hours Stock Movers 12/07: (VYGR) (LULU) (HRB( Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
A 3D-printed Facebook logo is seen in front of a displayed stock graph in this illustration taken November 3, 2016. REUTERS/Dado Ruvic/Illustration
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
By Noel Randewich
SAN FRANCISCO (Reuters) - Shares of Amazon.com Inc (NASDAQ: AMZN), Alphabet Inc (NASDAQ: GOOGL) and other technology companies sank on Thursday as Wall Street sold them to pay for infrastructure names that could benefit from potential economic stimulus spending by U.S. President-elect Donald Trump.
Before his unexpected victory in Tuesday's election, investors had worried about uncertainty that a Trump presidency might create, but traders in the past two days have been looking to business sectors that might stand to benefit.
Amazon fell 4.7 percent to its lowest level since July, while Alphabet dropped 2.3 percent. Facebook Inc (NASDAQ: FB), Apple Inc (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT) lost about 2.7 percent each.
"I don't think there's anything in the new administration that's going to be negative for tech stocks," said Michael Yoshikami, head of Destination Wealth Management. "It's just that other things are more in demand, and so there's a rotation."
In his acceptance speech, Trump reiterated his commitment to increased infrastructure spending, while striking a conciliatory note and avoiding references to controversial campaign promises.
The S&P 500 technology index <.SPLRCT> dropped 2 percent on Thursday and was on track for its steepest daily decline in two months, while the materials index <.SPLRCM> rose 1.27 percent. The industrial index <.SPLRCI> jumped 2.1 percent, helped by a 3.8 percent surge in Caterpillar Inc (NYSE: CAT).
Banks also rallied on expectations that Trump would roll back financial regulation.
The technology sector recently traded at about 16.2 times expected earnings, in line with the S&P 500 <.SPX>, according to Thomson Reuters Datastream. The materials sector traded near 15.9 times expected earnings.
Thursday's loss leaves Apple, which is struggling with lackluster iPhones sales, up 1.9 percent in 2016, lagging the S&P 500's 6 percent rise.
(Reporting by Noel Randewich; Editing by Lisa Von Ahn)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tailored Brands (TLRD) Tops Q3 EPS by 13c
- H&R Block (HRB) Tops Q2 EPS by 1c
- Volatility and Volume movement
Create E-mail Alert Related CategoriesReuters, Trader Talk
Related EntitiesDonald J. Trump, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!