10/27/23 GDP Higher, Tech Stocks Lower


Thursday’s trading session was met with seemingly positive news. 

The U.S. economy grew at a pace of 4.9%, according to the advance estimate from the BEA.

Chart from WSJ

Forecasters projected growth of just 0.6% on average.

A booming economy didn’t inspire buyers. Selling pressures persisted in the markets.

The indexes closed mixed but favored the bears

  • Dow Jones -0.8%
  • Nasdaq -1.8%
  • S&P 500 -1.2%
  • Russell 2000 +0.3%

The indexes heavily weighed by large caps suffered the most. But under the surface, buyers were still pushing select prices higher.

Of all the listed stocks…

  • 45% advanced
  • 51% declined

Sector Round Up

3 of the 11 sectors closed Thursday’s session with gains.

The winners…

  • Real Estate (XLRE) +2.1%
  • Utilities (XLU) +0.9%
  • Materials (XLB) +0.7%

Risk-on stocks were at the bottom…

  • Consumer Discretionary (XLY) -1.6%
  • Technology (XLK) -1.9%
  • Communications (XLC) -2.2%

Driving Factors

Real Estate was propped up by…

Image from IStock

Communications was dragged down by…

  • Disappointing guidance from Meta (META), -4%
  • Lost subscribers for NBC parent Comcast (CMCSA), -8% 


Fear still hasn’t made a decent showing in the market.

The VIX is struggling to move much higher even though the 2-day selloff has rocked tech stocks.

VIX Daily Candles – Chart from thinkorswim

The levels to watch right now are 22 and 20. 

  • Above 22 is bearish
  • Below 20 is bullish

Your latest readout…

We expect the seasonal bottom to be in by the end of next week.


Wall Street will look to the Bureau of Economic Analysis again this morning.

The latest Personal Consumption Expenditures Price Index (PCE) will drop at 8:30.

PCE is the Fed’s preferred measure of inflation.

Next week, the FOMC will convene to make a decision about interest rates. Expectations currently favor holding rates steady.


METC support at $11
SRRK support at $10
EPAC support at $28
PGTI support at $30
LOGI on watch

Leave a Comment

Your email address will not be published. Required fields are marked *