Sharp losses for small caps and tech; money flows into utilities


Today's selloff is following the pattern of most in the past few weeks, with the small caps (IWM -1.9%) and tech (QQQ -1.5%) leading the way. Pacing declines in the Nasdaq are a 8.8% dive in Amazon post-earnings and a 4.6% fall in Facebook. Setting tongues wagging in FB - but hardly a huge deal - is the sale of another 283K shares by Sheryl Sandberg, bringing her holdings down to 8.7M shares.

The liquidation in biotech has previously been a convenient excuse for small cap selloffs, but the IBB is off just 1.4% today, outperforming the Russell 2000.

What's working? Utilities again. The XLU +0.8% today and +13% this year, outperforming the Russell 2000 by about 1.6K basis points.

Small cap ETFs: IWM, TZA, TNA, UWM, VB, IJR, SLY, RWJ, URTY, SCHA, TWM, RWM, SRTY, SAA, DWAS, VTWO, SDD, VIOO, JKJ, RSCO, SBB, FYX, XSLV, EWRS, TWOK, SMLV, PXSC

Utility ETFs: XLU, IDU, VPU, NLR, GRID, JXI, NUCL, DBU, IPU, UPW, RYU, PUI, FUTY, FXU, SDP, PSCU, UTLT

Biotech ETFs: IBB, XBI, BIB, BBH, FBT, PBE, BIS

From other sites
Comments (7)
  • Guy in Ithaca
    , contributor
    Comments (428) | Send Message
     
    Basically part 2 of the correction as far as I can tell and not a surprise to me. Although a bit annoying not really a concern at all for the long term investor at this point. The momentum, high P/E and high Betas falling faster which is no surprise. The supposed concern with Ukraine, if true, is a bit irritating and silly. Why be concerned with an absolutely unknown quantity? May be some buying opportunities opening up.

     

    Would be nice to see money flowing into geothermal utilities for a change.
    25 Apr 2014, 01:50 PM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3152) | Send Message
     
    i've got a long way to go until retirement, i don't mind seeing lower prices every now and then.
    25 Apr 2014, 03:07 PM Reply Like
  • just read the instructions
    , contributor
    Comments (740) | Send Message
     
    I rather think that this "correction" was initiated by amazon and facebook, impacting some indices and then the bots were in full automatic mode.
    25 Apr 2014, 04:10 PM Reply Like
  • Hoang6
    , contributor
    Comments (358) | Send Message
     
    You're correct. I fully anticipated Facebook would bring us into this mess, but its fan base is too crowded (and stupid)!
    25 Apr 2014, 05:29 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1342) | Send Message
     
    I have to say at this point I'd rather own FB then AMZN. FB actually makes a profit and has done a great job monetizing their business model. AMZN sells a lot of stuff but the margins are so tight that the net revenue is depressed. Obviously AMZN owns the on-line customer business. But this quarter was a perfect example of investors signaling AMZN to "make some money". On the other hand, FB (like GOOG) is an advertising gold mine. I'm praying right now that FB gets pushed down to the low $50's. That's a gift to long-term investors in my opinion.
    26 Apr 2014, 11:03 PM Reply Like
  • bbro
    , contributor
    Comments (11195) | Send Message
     
    I guess Sheryl is "leaning out"....
    25 Apr 2014, 04:45 PM Reply Like
  • Stephen Aniston
    , contributor
    Comments (3476) | Send Message
     
    This has more to do with Alibaba. Finally, there is another company in internet retail with the scope and scale of Amazon that is a must have and fund managers are simply selling AMZN to buy ABABA.
    27 Apr 2014, 09:18 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs