The Hunt for the Next 10 Bagger

[RULiquid]

U.S. stocks fall; momentum plays hit hard
Biotech, Internet stocks slump
NEW YORK (MarketWatch) — So-called momentum plays led a selloff in U.S. stocks on Tuesday that pulled the Dow Jones Industrial Average and S&P 500 further from record levels.

The Dow Jones Industrial Average (DJI:DJIA) dropped 117.59 points, or 0.7%, to a preliminary 16,906.62, while the S&P 500 (SNC:SPX) shed 13.94 points, or 0.7%, to 1,963.71. The Nasdaq Composite (NASDAQ:COMP) lost 60.07 points, or 1.35%, to 4,391.46. The iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) fell 2.1%, while Global X Social Media Index ETF (NASDAQ:SOCL) fell 3.85%.

Rob Stein, chief executive officer of Astor Investment Management, said investors shouldn’t be alarmed by Tuesday’s pullback.

“When markets reach new peaks, investors tend to take opportunity and lighten up and rebalance. We think the economy is in its midcycle and has more room to grow. In this environment our risk-reward model is still favoring stocks with decent expected returns for the next several quarters,” Stein said.

The latest earnings season get its unofficial kickoff after the market’s close, as Alcoa Inc. releases its second-quarter results.

Investors had a light load of economic news to digest during the session. A small-business optimism index showed a June dip amid a big fall in those who expect the economy to improve. Job openings at U.S. workplaces rose to 4.64 million in May — the most since June 2007 — from 4.46 million in April.

Richmond Federal Reserve President Jeffrey Lacker said the Fed must be pre-emptive, hiking rates before inflation emerges. In contrast, Minneapolis Fed President Narayana Kocherlakota downplayed recent higher readings on inflation, saying he expects the price level to stay below the central bank’s target for several more years, possibly even until 2018. http://www.marketwatch.com/story/dows-hold-on-17000-looks-shaky-as-alcoa-looms-2014-07-08