Saturday 5 April 2014

Momentum stocks sink; Nasdaq posts worst day since February

Traders work on the floor of the New York Stock Exchange By Caroline Valetkevitch NEW YORK (Reuters) - Momentum shares like Netflix and TripAdvisor sold off sharply for a second straight day on Friday, giving the Nasdaq its worst day since February and leaving investors anxious about how much further they may fall. The big drop in momentum stocks overshadowed the day's relatively strong March jobs data, which helped the Dow and S&P 500 hit intraday record highs early in the session. Nasdaq's 2.6 percent loss follows a nearly 1 percent slide on Thursday and puts the index more than 5 percent below its closing high for the year, which was set on March 5. "For the past couple of weeks, the high-beta, high-risk, high-reward type plays have been underperforming the larger-cap S&P 500 and even the Dow," said Joe Bell, senior equities analyst with Schaeffer's Investment Research in Cincinnati.




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