Investors only have eyes for tech stocks right now. Here's what they're missing.

By Barbara Kollmeyer

Critical information for the U.S. trading day

Jensen Huang is $3.6 billion poorer after Nvidia's selloff reached a third and bruising day, taking tech down with it. However, he may claw some of that back as the stock tilts higher in premarket, along with futures overall for Tuesday.

Given we're at the end of month and quarter, portfolio rebalancing can come with the territory, explaining some summertime profit-taking on the market monster that is Nvidia.

Time will tell if the selloff was at all merited.

Our call of the day is going to drag your eyeballs away from Nvidia and its ilk to discuss what's been going on for the rest of the market.

It comes from Fundstrat's head of technical strategy Mark Newton, who sees a short-lived tech and market selloff running its course and urges a focus on some other sectors largely ignored up to now.

Newton says "many in the financial media continue to discuss the tech selloff while not mentioning the degree that sectors like financials, discretionary, healthcare and industrials have begun to snap back."

Ahem, well then. Even if the S&P 500 SPX has sold for three straight days, the equal-weighted S&P 500 XX:SP500EW - every company has the same weighting - and Dow industrials DJIA have been up five straight sessions, says Newton.

Read: The Dow has been lagging the S&P 500 by a lot, but that's about to change

So progress for sectors like the ones he mentioned above, plus energy and communications services over the past week are "helping to kick off a broad-based rally, which will become a bit more noticeable once the pullback in technology runs its course."

He says corrections for the S&P 500 - with support near 5,400 - and Nasdaq-100 Invesco QQQ Trust Series or QQQ QQQ - with support near 468-471 - will likely end this week.

His rationale includes technical patterns that are showing some choppy action, but not severe weakness; investor sentiment that's "not nearly as optimistic as what would be required to expect a peak in stock indexes;" and the months of June and July positive in election years going back to 1950.

With regards to tech, he says it looks like a few days consolidation more than a peak that has been reached. "Trends have not been broken for either SPY, nor QQQ and until at least minor evidence of a pullback appears, it's difficult to bet against the US Stock market," said Newton.

Breaking down some of the overlooked underdogs out there, Newton is watching a looming breakout for biotechnology, noting the iShares Biotech ETF IBB reached levels not seen since late February. A close above $139.81 this week would mean the highest such finish since early 2022 -Newton's own target is $148.

Healthcare is also facing seasonal tailwinds, and he notes the SPDR S&P Healthcare ETF XLV is now at the highest levels since March. Biotech and pharma have been in the lead, with medical devices and healthcare stocks themselves likely needing signs of interest rate easing before moving higher, he notes.

But healthcare has been "higher every July of the past 10 years except 2019," with the average return of that SPDR ETF 2.8%, the highest of any month apart from November, says the strategist.

The markets

The S&P 500 SPX and Nasdaq COMP are higher after those indexes have dropped three straight sessions. Treasury yields BX:TMUBMUSD10Y BX:TMUBMUSD02Y are steady, gold (GC00) is up and bitcoin (BTCUSD) is hovering above $61,000 after dipping below $60K late Monday.

   Key asset performance                                                Last       5d      1m      YTD     1y 
   S&P 500                                                              5447.87    -0.46%  2.70%   14.22%  25.85% 
   Nasdaq Composite                                                     17,496.82  -2.02%  3.40%   16.56%  31.20% 
   10-year Treasury                                                     4.241      1.40    -31.60  36.01   47.41 
   Gold                                                                 2345.3     0.50%   0.43%   13.20%  21.34% 
   Oil                                                                  81.31      1.71%   4.51%   13.99%  16.94% 
   Data: MarketWatch. Treasury yields change expressed in basis points 

The buzz

Boeing (BA) reportedly plans to change the terms of a more than $4 billion deal for Spirit AeroSystems (SPR) to stock as the aircraft maker has been burning through cash. Boeing shares are slipping.

Overseas, shares of Airbus (FR:AIR) are tumbling after the Boeing rival cut guidance and warned of fewer deliveries ahead.

Shares of Trump Media (DJT) are up another 13%, after a 21% surge on Monday, breaking a weekslong slide.

Birkenstock shares (BIRK) are dropping after the sandal maker said its biggest shareholder will unload some stock.

Oracle (ORCL) has warned that a U.S. TikTok ban could cut into its earnings.

Novo Nordisk(DK:NOVO.B) (NVO) has won approval to start marketing its blockbuster weight-loss drug Wegovy in China.

Walmart (WMT), Amazon (AMZN), Target (TGT) have announced competing summer shopping events.

Home prices in 20 U.S. cities hit another record high, according to S&P Case-Shiller data. Consumer confidence data is coming at 10 a.m. Fed Gov. Michelle Bowman said from London earlier that the central bank shouldn't be considering rate cuts due to risks of sticky inflation. Fed. Gov Lisa Cook will speak at noon.

The Biden administration's bid to lower student-loan payments and provide debt cancellation to more borrowers looks troubled after parts of those were blocked by Kansas and Missouri courts.

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Top tickers

These were the top-searched tickers on MarketWatch as of 6 a.m.:

   Ticker  Security name 
   NVDA    Nvidia 
   GME     GameStop 
   TSLA    Tesla 
   TSM     Taiwan Semiconductor Manufacturing 
   AAPL    Apple 
   AMC     AMC Entertainment Holdings 
   DJT     Trump Media & Technology 
   SMCI    Super Micro Computer 
   MLGO    MicroAlgo 
   AMD     Advanced Micro Devices 

The chart

While the S&P 500 logged another lower close on Monday, it's still on something of a spectacular streak, say Bespoke Investment Group analysts.

"If the S&P 500 manages to NOT close down more than 2% today, this will be the 335th trading day in a row without a one-day drop of at least 2%, which dates back to the last 2% drop on 2/21/03," they said ahead of Monday's finish, which left the index 0.3% lower.

Their chart below shows how that streak has stood over time.

"While the current streak is only about a third as long as the longest on record, if we get to July 17th without a one-day drop of 2%+, this will be the longest streak without a 2%+ drop since 2007," they say.

Random reads

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Matthew Modine has a beef with Amazon

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-Barbara Kollmeyer

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06-25-24 1007ET

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