The indices have bounced back from some selling on the tax bill announcement, but it is still messy action out there.
While Nasdaq breadth is running positive, the big-cap FAANG names are weak. What is most interesting is how Facebook (FB) and Alibaba (BABA) have sold off on very good reports while Amazon (AMZN) and Alphabet (GOOGL) were chased higher on their very good reports last week. Expectations shifted after those reports and both FB and BABA largely priced in the good news already.
NYSE breadth is running close to even, but we have some strength in biotechnology names that are of interest to speculative buyers. A couple of biotech names on my screens today are Zogenix (ZGNX) , Aimmune Therapeutics (AIMT) and Bellicum Pharmaceuticals (BLCM) .
Apple's (AAPL) earnings tonight will be of particular interest, not just because it is the largest company in the market, but because with that report out of the way it will cause a shift in the program trading. Earnings season shifts to smaller stocks in the next few weeks, so the computer programs will be looking for different catalysts. (Facebook, Alphabet and Apple are part of TheStreet's Action Alerts PLUS portfolio.)
For the last couple weeks, we have had buy programs chasing good earnings, but now other news will be the most likely catalysts. If the AAPL earnings weren't tonight we would probably have seen a much different reaction to the tax policy news.