It’s very early in the quarter, but it’s not off to a great start
It’s very early in the quarter, but it’s not off to a great start: Sevens Report Editor, Tom Essaye, Quoted in Barron’s
S&P 500 Slides for Sixth Straight Day. Tech Stocks Are Struggling.
Sevens Report Research’s Tom Essaye told Barron’s that traders that have been worried about soaring tech valuations took the first wave of earnings reports as an opportunity to sell.
“It’s very early in the quarter, but it’s not off to a great start,” Essaye says. “And I think that it’s giving people an excuse to lighten up.”
Super Micro Computer shares also sank after investors wondered why the firm didn’t preannounce March quarter results as it has tended to do ahead of strong reports.
As for the broader market, Essaye thinks the S&P 500 was due for a pullback, and could fall further before valuations start looking attractive.
“The problem now is that news isn’t necessarily turning really bad, it’s forcing the market to realize that they were too aggressive in their positive expectations,” Essaye says. “And this is all being unwound.”
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