Stocks were looking in trouble out of the gate, and a worse than expected NAPM non-manufacturing number didn't help the situation. The Depart of Justice tried to inject some positive news by saying they will not break up Microsoft, but that selling reprieve last about 30 seconds.
The Dow is once again closing in on its daily low as well as last weeks low of 9,869. The Nasdaq-100 tracking stock (AMEX:QQQ) is down 2.20%, and now within $1 of the April 4th low.
Technology sectors are taking it on the chin, with computers, software, semiconductors, networking, and biotechnology all down over 2%. Insurance and oil service are the only sectors in positive territory.
Disney (DIS) and Fox's (FOX) parent News Corp have teamed up to offer video-on-demand. The move combats VOD pacts by MGM, Paramount Pictures, Sony Pictures, Universal Studios, and Warner Bros. But unlike those companies, the Disney/News Corp pact will offer movies over the web at movies.com as well as over cable networks.
Disney Daily Chart
The news isn't helping Disney stock, which is down 8 cents today. Shares of Disney have been getting dis'd since the stock peaked in May. DIS is down over 28% since then, and dropped below support at $26 last week. The stock has been hanging in there since then, but may need to rely on support at $23.50.
Fox Daily Chart
Fox has been performing a little better than Mickey and his friends, but is currently at a critical juncture. The decline started in June, and Fox then proceeded to drop below the 50-day moving average. The decline has temporarily halted at the 38.2% retracement and 8-month up trend around $24. With the 200-day moving average rising to add a third point of support, a decision on Fox's future course could be imminent.