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Thursday's Market Minute: Netflix Continues To Take A Bite Out Of The FANG Index

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Thursday's Market Minute: Netflix Continues To Take A Bite Out Of The FANG Index

With Netflix, Inc. (NASDAQ: NFLX) reporting disappointing quarterly results and coming under pressure as we head into the cash open this morning, I’m going to be keeping an eye on the FANG+ futures (/FNG) today. With Facebook and Google facing potential regulatory issues and struggling to participate in the rally we’ve seen this summer from the broader tech market, the big tech names that helped provide the lift in the past are now the names starting to concern investors and leading them to question whether this rally can last. And rightfully so, as the FANG stocks have been lagging all year.

They rallied with the /NQ off the December low to the May high, and both sold off into the beginning of June. The divergence started to play out as the /NQ, led by the semiconductors, rallied off the June lows into a new 2019 high. Meanwhile, /FNG has yet to participate. While it recently got back to 7,300, it’s still holding below the double-top from April/May around 7,700. It will be important for the /FNG companies to participate in order for the other major indices (/ES, /NQ, /YM) to follow though. Without the /FNG names, it’s possible this tech rally is all bark and no bite. Stay tuned to the TD Ameritrade Network as we’ll be keeping an eye on the indices and all the major markets as earnings, central bank activity, and headline news continue to impact price.

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Posted-In: FAANG NetflixEarnings News Futures Markets Tech General Best of Benzinga

 

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