By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market is recovering
from session lows and moving modestly higher on Monday, following a
dip earlier in the trading session. The uptick in 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) hovered near 1,907, marginally higher on
the day.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) added 30 points, or 0.2%,
to 16,572.55. The blue-chip index turned negative for the year on
Friday.
The Nasdaq Composite (RIXF) gained 18 points, or 0.4%, to
4,296.12. The Russell 2000 (RUT) was the best performer, adding 13
points, or 1.3%, to 1,066.52.
Investors are likely to turn their attention to earnings season,
which gets under way in earnest on Tuesday, with major banks such
as J.P. Morgan Chase & Co.(JPM) and Citigroup Inc. (C) among
those due to report.
Earnings boost to come? Christian Tegllund Blaabjerg, senior
strategist at Danske Bank Markets, expects the earnings season to
provide a boost for U.S. stocks. "In the U.S., EPS (earnings per
share) growth expectations are 5% year-over-year, which should
easily be beaten, providing equity markets with renewed hope after
disappointing macro numbers," he said.
Federal Reserve Vice Chairman Stanley Fischer was among several
Fed officials who spoke over the weekend. He said Saturday that an
eventual rate rise from the central bank won't damage the global
economy. Also: Fed's Evans: Stronger dollar is a headwind
Stocks to watch:
CSX Corp. (CSX) jumped 10%. 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 0.9%.
Hazmat-suit maker Lakeland Industries Inc. (LAKE) was up 6%
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 trimmed those gains to 1.7% after the retailer 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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