On Monday, index futures for US stocks remained little changed after the S&P dropped the worst in a week since May 2012 and the Dow shifted to negative territory amid global growth concerns.
The Nasdaq Composite Index dropped 0.7% while the S&P 500 and the Dow Jones Industrial Average dropped to 0.6% by 0.3%, as reported by USA Today.
According to Piper Jaffray’s Craig Johnson said that the continued weakness in the market is mainly due to the market internals, which is the reality that stocks are reaching new lows instead of new highs and that individual stocks’ stock charts and major stock indexes are turning down.
Kingsview Asset Management, Paul Nolte said, “The drop in stocks that essentially began a mere three weeks ago has shaved off 5% rather quickly. Many individual stocks are down much more than the averages are showing. That said we should see some bounce to the very oversold market early in the week.”
The earnings season is expected to rise this week, with the Dow Components Johnson & Johnson, Intel, American Express, UnitedHealth and General Electric including financials such as Citigroup, Wells Fargo, Bank of America and Morgan Stanley announcing their results.
In premarket trade, Ebola-related stocks were active after a Texas health worker became the first person to contract the virus in the United States, as Reuters reported. The health worker had treated a Liberian that died of the disease last week in Dallas.
Maker of garments to guard against hazardous materials, Lakeland Industries climbed 20.2% to $23.59 after soaring more than 125% last week. Face masks maker, Alpha Pro Tech rose 16.3% to $8.64 premarket hitting 129% last week.
After the second Ebola diagnosis, smaller biotech names were up sharply with a rise of 86.4% to $2.74 after the Friday jump of more than 83%. Tekmira Pharmaceuticals US listed shares rose 3.8% to $23.66.
To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/
To contact the reporter of the story: Jonathan Millet at email@example.com