By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market dipped in and
out of negative territory but with less than an hour to close
losses were accelerating. The volatile trading follows big losses
last week that had been triggered by global economic growth
concerns.
Monday's trading was focused on key technical levels, especially
as there is no data on the economic calendar and bond markets are
closed for Columbus Day holiday.
The S&P 500 (SPX) fell 14 points, or 0.7%, to 1,892.16. The
benchmark index has pulled back more than 5% from its peak reached
on Sept. 18.
All of the main benchmarks fell below their 200-day moving
averages by Monday morning. Falling below the 200-day moving
average level, and in the case of the S&P 500, below the 1,900
level, is considered significant as many analysts see the breach as
a sign of further declines. Vote here: Does this stock slump have
further to go?
The Dow Jones Industrial Average (DJI) shed 80 points, or 0.5%,
to 16,462.93. The blue-chip index turned negative for the year on
Friday.
The Nasdaq Composite (RIXF) dropped 25 points, or 0.6%, to
4,250.22. The Russell 2000 (RUT) was still hanging onto gain up 3
points, or 0.3%, to 1,057.20.
Karyn Cavanaugh, senior market strategist with Voya Investment
Management, is not surprised by increased volatility.
"Normal markets are volatile and the 6% pullback on the S&P
500 seems like a big drop while in the middle of it, but it's not,"
Cavanaugh said.
Cavanaugh pointed out that companies that were profitable two
months ago may see their share prices run up again after earnings
are released soon. She argues that volatility only made stocks
cheaper and more attractive.
On Tuesday, earnings season will get under way in earnings with
major banks such as J.P. Morgan Chase & Co.(JPM) and Citigroup
Inc. (C) among those due to report.
Stocks to watch:
CSX Corp. (CSX) jumped 6.4%. Citing sources, The Wall Street
Journal reported that Canadian Pacific Railway Ltd. (CP) approached
CSX about a tie-up. CSX rebuffed the overture, made in the past
week, those sources said. It's unclear if Canadian Pacific will
pursue it.
Shares of Tekmira Pharmaceuticals Corp. (TKMR) , one of the
pharmaceutical companies whose drug TKM-Ebola has been used in the
fight against the deadly virus, was up 2.4%.
Hazmat-suit maker Lakeland Industries Inc. (LAKE) surged 29%
after a 126% jump last week on fears related to the Ebola virus. In
addition, shares of face-mask maker Alpha Pro Tech (APT) rallied
10%.
J.C. Penney Co. (JCP) shares jumped as high as 6% before the
bell, but pared those losses. The retailer on Monday said Home
Depot executive Marvin Ellison will take over as a chief executive
next year, succeeding current CEO Myron Ullman. The move comes days
after J.C. Penney cut its sales forecast for the current quarter.
Read about more notable stock moves in Movers and Shakers
Other markets: European stocks traded mostly flat, while Hong
Kong stocks ( closed higher after strong Chinese trade data. Asian
stocks finished mostly lower. Gold (GCZ4) futures were slightly
higher, while crude oil (CLX4) slid.
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