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Markets Pull Back After Malaysia Plane Shot Down: SPX, Nasdaq, IBM, GOOG, SNDK, HUM, WLP, UNH, CF

|Includes: ANTM, CF, GOOG, HUM, International Business Machines Corporation (IBM), UNH, WDC

Stocks opened lower on Thursday, but, buyers quickly came in. However, in the afternoon, things took a quick turn to the downside, as a Malaysia plane was shot down over Ukraine, and Israel launched a ground offensive! Both SPX and Nasdaq ended down more than 1%.

SNDK fell 13.56% after the company gave weak guidance for Q3. On the upside, CF broke out higher, after a 3-day climb; it ended up $5.52 above $250/share. Healthcare stocks HUM, WLP, and UNH popped higher UNH stated that it would expand private health plan products on government exchanges under the Affordable Care Act ("Obamacare").

After the market, IBM reported weaker-than-expected sales; its stock retreated 2% in after-hours trading. GOOG delivered a solid quarter with rising revenue. However, the trading in after-hours was muted, leaving its stock up just +1%.

The Dow was down 161.39 points; SPX fell 23.45 points; Nasdaq tumbled 62.52 points:

SOXX (semiconductor) fell 2.52%. BTK (biotech) dropped 2.53%. XLF (financial) lost 1.31%.

SPX

SPX sank 23.45 points to close at 1958.12. It closed below the 30-day MA. Its MACD fell.

Nasdaq

Nasdaq stumbled 62.52 points to close at 4363.45. It also closed below its 30-day MA.

Both SPX and Nasdaq closed below their respective 30-day MAs. This drop is pretty sharp. I expect stocks to rebound a bit on Friday. There will be buyers on pullbacks. But, the recent quick drops should start to raise warning flags. Already, we have been seeing some selling on strength. Just this morning, the Dow made a new all-time high at nearly 17,150! But, the Dow closed below 17,000. Things are quite volatile right now. It demonstrates that stocks are not stable at these levels, at least not for now. Both Nasdaq and SPX are testing lows from last week. The Dow is holding up better. SLB dropped 1%, as its profit fell. Let's see how oil services do tomorrow.

Good night and HappyTrading! ™

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