Stocks remained near session lows Friday afternoon following weaker-than-expected consumer spending data.
Tech stocks led the decline with the Nasdaq falling 1.1%. The S&P 500 was off 1% and the Dow Jones industrial average was down 0.8% as the major averages appeared headed for a second straight decline. Volume was running above Thursday’s levels in the stock market today.
The Commerce Department said Friday that consumer spending edged up 0.1% last month, below expectations for a 0.2% increase.
IBD 50 stock Ellie Mae (ELLI) came off its earlier lows but not before it fell more than 8% below a 91.54 buy point, triggering a sell signal. The stock took a beating despite a better-than-expected quarterly earnings report announced after the close Thursday.
U.S. Concrete (USCR), another IBD 50 name, dropped nearly 8% in heavy volume and nearly erased a 17% gain from a 59.50 buy point of a cup-with-handle base. Shareholders should sell before letting a sizable profit turn into a loss.
Computer data stocks were among the worst performers due to weak earnings reports from Seagate Technology (STX) and Western Digital (WDC).
Seagate plunged 19% after profit for the latest quarter dived 80% to 22 cents a share, far below Wall Street expectations. Sales fell 22% to $2.6 billion. Western Digital dropped 13% after its quarterly earnings report also disappointed investors.
Both companies are suffering from falling demand for their hard disk drives. Gilead Sciences (GILD) led biotech stocks lower, dropping 9% in huge volume following disappointing Q1 results. The stock has sliced through its 200-day and 50-day moving averages this week and is now 28% off its 52-week high.
Meanwhile, Internet stocks were the biggest gainers.
Amazon.com (AMZN) jumped 9% after a blowout Q1 earnings report. The stock broke out past a 638.11 buy point and is extended from an earlier entry at 603.36.
