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The S&P 500 Index (SNPINDEX: ^GSPC  ) needed to take a break. It had hit all-time highs in nine of the last 10 sessions and, on Thursday, the index did something unconventional: It took a step back. Perhaps it was warranted, as new housing starts slipped big-time in April (more than 16%), and recent industrial production figures underwhelmed. But while the S&P was going through a modest, eight point, 0.5% pullback to close at 1,650, the following three stocks were suffering through far more severe sell-offs.

Chip maker Advanced Micro Devices (NASDAQ: AMD  ) , which has been on an absolutely unbelievable run as shares soared more than 80% this year, cratered 12.6% today on some scathing comments from a Goldman Sachs analyst, who thinks the run-up has been exaggerated. He noted that, while AMD doesn't traffic exclusively in the PC market, the PC segment still makes up 45% of the company's sales, implying that investors have gotten too excited about AMD's involvement with the new Microsoft Xbox consoles. 

Biotech company Celgene (NASDAQ: CELG  ) is the second-largest decliner in the index today, slumping 4.7%. The company develops products that treat cancer, including multiple myeloma drug Revlimid, which reportedly achieved a response rate of 56% in a new clinical trial. The counterintuitive fall in Celgene today comes after a Piper Jaffray analyst lauded the results of the study; obviously, not everyone agreed with that sentiment. 

Lastly, Computer Sciences (NYSE: CSC  ) logs its second consecutive day on this list, shedding 4.7% on the heels of its quarterly earnings announcement. Sometimes, there's little rhyme or reason behind a stock that continues to fall and fall, other than momentum. That may very well be the case with Computer Sciences, which, as a leader in the IT field, not only was more profitable in the most recent quarter, but also returned more than $250 million to shareholders through share buybacks and dividends.

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  • Report this Comment On May 16, 2013, at 7:13 PM, rav55 wrote:

    AMD plunged because Goldman Sachs analyst James Covello wanted to take profits. So he announced that AMD should be sold now so that everyone could share in the sell off without risk of having the stock go higher instead. Furthermore, this announcement probably came one the heels of a large short so they could make money while it went down.

    It's called collusion. And I think that the SEC should look into the timing of it..

    Here is the scenario: AMD had been increasing recently in share value. Before the open on May 16th Goldman Sachs analyst James Covello announced that AMD's stock was too expensive and should be sold. Two things happened here; 1. There was a general announcement on the "street" that it's okay to sell so the price would not continue to rise and sellers would not lose additional gains. This smacks of collussion. 2. The stock was possibly heavily shorted in anticipation of the upcoming announcement to sell. When people have power, as demonstrated by Goldman Sachs analyst James Covello then that power needs to be mediated. And when the power gets exercised, then that use needs to be investigated. Was this announcement collusion to manipulate the market for a massive short? Who shorted the stock, at what volume and what is their connection to Sachs analyst James Covello. What was the timing of the short and the announcement?

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S&P 500 2,159.93 13.83 0.64%
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Related Tickers

9/27/2016 4:45 PM
^GSPC $2159.93 Up +13.83 +0.64%
S&P 500 INDEX CAPS Rating: No stars
AMD $6.54 Up +0.22 +3.48%
Advanced Micro Dev… CAPS Rating: **
CELG $107.40 Up +1.09 +1.03%
Celgene CAPS Rating: *****
CSC $52.10 Up +0.54 +1.05%
Computer Sciences CAPS Rating: **