Nasdaq drops 1% as momentum names dropComment on this story
New York - The Nasdaq fell 1 percent on Friday, reversing earlier gains as shares of some of the index's biggest recent out-performers dropped dramatically.
Losses were limited in the Dow and S&P 500, with investors continuing to digest the March payroll report, which came in weaker than expected but still indicated the economy was gaining momentum.
Internet and biotech companies were the day's biggest losers. Intuitive Surgical fell 5 percent to $513.42 while Alexion Pharmaceuticals slid 4 percent to $145.37.
TripAdvisor Inc sank 5 percent to $86.75 and Netflix Inc shed 3.8 percent to trade at $341.39.
“The market hasn't rolled over, but these bigger high-flyers are taking it on the chin, which suggests some people are changing their ideals,” said Michael Matousek, head trader at US Global Investors Inc in San Antonio.
“They don't want to be in growth names, they want to be more defensive.”
The Dow Jones industrial average was down 14.89 points, or 0.09 percent, at 16,557.66.
The Standard & Poor's 500 Index was down 3.72 points, or 0.20 percent, at 1,885.05.
The Nasdaq Composite Index was down 58.08 points, or 1.37 percent, at 4,179.66.
Indexes remain positive for the week, with the Dow up 1.4 percent, the S&P up 1.5 percent and the Nasdaq up 0.6 percent. - Reuters