Yesterday there was utter chaos in the market with the index bouncing about in a 150 point range due to the Chinese tariff situation.  Today there was again utter chaos with the index bouncing about in a 150 point range due to the FAANG CEO’s being grilled on Capitol Hill with particularly Facebook and Twitter defending themselves before a skeptical Congress.  The whole tech sector took a hit due to the ever increasing scrutiny to which the FAANG companies have been subjected.  The Nasdaq and S&P both closed in the red but, despite the swings back and forth, the Dow still managed to squeeze out a slim 21 point gain.  All eyes remain on Thursday which is the first day Trump might impose the additional $200 billion dollars against China.  Volume was above average at 7 billion shares traded. 

wed  SEPTEMBER 5, 2018 / 6:04 pm 

Nasdaq falls as U.S. lawmakers grill Facebook, Twitter executives

April Joyner

DJ:  25,974.99  +22.51       NAS:  7,995.17  -96.07         S&P:  2,888.60  -8.12        9/5

NEW YORK (Reuters) - The Nasdaq fell more than 1 percent on Wednesday, dented by technology stocks after Facebook Inc (FB.O) and Twitter Inc (TWTR.N) executives defended their companies before skeptical U.S. lawmakers.  Adding to pressure on technology stocks, the Justice Department later said it would meet with state attorneys general to discuss worries that social media platforms were “intentionally stifling the free exchange of ideas.” Facebook and Twitter were not specifically named.  Twitter shares dropped 6.1 percent. Facebook shares fell 2.3 percent, contributing heavily to both the Nasdaq’s and the S&P 500’s declines. The Dow, however, eked out a slight gain. 

Shares of other tech companies, including Alphabet Inc (GOOGL.O), Snap Inc (SNAP.N) and Microsoft Corp (MSFT.O), also fell. In the consumer discretionary sector, investors also sold off shares of Amazon.com Inc (AMZN.O) and Netflix Inc (NFLX.O), two members of the group of stocks known as FANG. 

Tech and consumer discretionary stocks were the biggest weights on the S&P 500. The S&P 500 technology index fell 1.5 percent, and the S&P 500 consumer discretionary index fell 1.1 percent.  “Because these companies have become so prominent, they’re attracting scrutiny on the part of regulators and legislators,” said John Carey, managing director at Amundi Pioneer Asset Management in Boston. “They remain market leaders, but there are potential risks.”

The Dow Jones Industrial Average .DJI rose 22.51 points, or 0.09 percent, to 25,974.99, the S&P 500 .SPX lost 8.12 points, or 0.28 percent, to 2,888.60 and the Nasdaq Composite .IXIC dropped 96.07 points, or 1.19 percent, to 7,995.17. 

Energy stocks added to the S&P 500’s losses.  Halliburton Co (HAL.N) fell nearly 6.0 percent after the oilfield services provider warned third-quarter earnings could be hurt from moderating activity in the Permian Basin and a slower-than-expected ramp-up of new Middle East contracts.  Rival Schlumberger NV (SLB.N) dropped 1.5 percent and Baker Hughes (BHGE.N), the oilfield services arm of General Electric (GE.N), fell 2.2 percent.

With concerns over trade simmering, Commerce Department data showed that the U.S. trade deficit hit a five-month high in July, which economists said could heighten the White House’s resolve to aggressively pursue an “America First” approach to trade.  The data comes amid concerns that a U.S. proposal to impose tariffs on $200 billion more in Chinese imports could go into effect soon after a public comment period ends on Thursday, even as the U.S.-Canada talks to renegotiate the North American Free Trade Agreement continue.  China’s JD.com Inc (JD.O) slid 10.6 percent, down for the second day in a row, after police said the retailer’s Chief Executive Officer Richard Liu was arrested in Minneapolis last week after a rape allegation. Liu has denied any wrongdoing and was released on Saturday.

Declining issues outnumbered advancing ones on the NYSE by a 1.30-to-1 ratio; on Nasdaq, a 1.63-to-1 ratio favored decliners.  The S&P 500 posted 45 new 52-week highs and nine new lows; the Nasdaq Composite recorded 97 new highs and 51 new lows.

Volume on U.S. exchanges was 7.03 billion shares, compared to the 6.15 billion average over the last 20 trading days.