Facebook's Disappointing Results Might Weigh On Nasdaq

As the tech sector licks its wounds from Facebook’s sub-par quarter, the question is whether the contagion might spread. At least early on, it’s impressive how well the rest of the market is hanging in there despite the Facebook news. It certainly looks like tough sledding for tech after Facebook disappointed investors and saw shares tumble more than 20% in post-market trading. However, signs of a thaw in the U.S./Europe trade relationship might help balance the load for the broader market, and a host of earnings reports might divert attention, too. Those tidings from Facebook could mean pressure today not only on its shares, but potentially on shares of the other “FAANG” stocks including Amazon, which is due to report after the close. Most of the FAANGs fell in apparent sympathy with Facebook after the close yesterday. However, keep in mind that Facebook’s issues are its own, not necessarily Amazon’s or Alphabet’s. In fact, Amazon is more of a retail stock now than a tech, even though it does tend to often move with the other FAANGs. Watch out for charges of guilt by association today. Remember, too, that when Netflix issued disappointing results last week, it didn’t seem to have much impact beyond that one name.