- The Dow will drop to 23,000 before it ever reaches above 27,000 again, according to just over half of CFOs on the CNBC Global CFO Council in a recent survey.
- That would represent an 8 percent decline in the Dow from its current level.
- The trade war with China is the No. 1 concern among CFOs in the fourth quarter.
The Dow plunge isn’t anywhere near done. At least, not according to chief financial officers at major corporations.
More than half of the members of the CNBC Global CFO Council think the Dow Jones Industrial Average will fall below 23,000 — roughly 2,000 points from its current level — before the stock market barometer is ever able to top the 27,000 level. The 23,000 level would equate to another 8 percent in decline among the Dow group of stocks before the selling stops. The Dow dropped by more than 400 points on Monday.
- Facebook shares fell after a WSJ report that CEO Mark Zuckerberg is becoming much more aggressive in how he manages the tech giant.
- Apple shares dropped following a report the company has cut production for its newest iPhones.
- Bitcoin also continued a year-long slide, hitting its lowest level of the year.
This could be the final nail in the coffin for the FANG trade.
Three of the companies within the big-tech quartet have entered into death crosses, with Facebook, Netflix and Google parent Alphabetseeing their 50-day moving averages cross below their 200-day moving averages.
Facebook was first to do so, in September. Netflix and Alphabet shares hit it last week, and Amazon isn’t far off. This technical development is often seen as a bearish signal of more pain to come.
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