The US government deadlock is starting to take its toll on investor confidence. Today we're seeing investors roll out of riskier stocks and into safer investments. Technology is getting hit the hardest, with the sector down over 2%. The only positive sector today is utilities, up just under half a percent. Of course, utilities are the quintessential safe-haven stocks. Big tech names are really taking it on the chin today. Facebook (FB) is down over 6%, LinkedIn (LNKD) is down nearly 7%, and Yahoo (YHOO) and Netflix (NFLX) have dropped around 5%. This is how a selloff starts. Investors first take profits on their biggest winners. Then, they start selling the rest of their holdings if conditions don't improve. Bottom line, Congress needs to act now to keep investors from running to the hills.
At least Twitter has the ability to delay the IPO as long as needed. Although, I'm hearing the initial valuation isn't supposed to be higher than $20 billion, or 1/5th the size of the Facebook IPO.
Nice summary Jay, interesting to see the tech stocks getting sold so quickly and not a good back drop for the twitter IPO. I was reading reports recently that some expected the post float valuation to touch US$40 billion, this looks like a challenge in the context of the current environment.