The NASDAQ Composite suffered a distribution day, selling off -0.26% on higher volume. The S&P 500 avoided a distribution day since it was essentially flat on the day, while the Dow was up 0.18%, all on higher NYSE volume.
Futures dropped sharply after NFLX reported weak earnings but are now only slightly lower at the time of this writing with the NASDAQ-100 hit the hardest due to its tech-heavy focus.
Fed Chairman Powell will testify on the economy and monetary policy both today and tomorrow. He is likely to reiterate the Fed's stance towards gradual monetary policy tightening. "In short, we expect the chairman to signal optimism on growth and inflation, consistent with continued 'gradual' tightening," wrote Jim O'Sullivan, chief economist at High Frequency Economics.
Focus List Notes:Netflix (NFLX) reported earnings yesterday after the close and missed badly on new subscriber numbers. Revenues also fell short of estimates, while forward guidance was lowered. The stock is set to open below its 50-dma this morning, and is likely a sell on the gap-down break.
All other Focus List names will pull back this morning, and investors should simply watch to see how well they hold near-term support since all four remaining names closed yesterday above their 10-dmas and 20-demas.
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