By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market inched higher on
Monday, following a brutal week of losses triggered by global
economic growth concerns.
The S&P 500 (SPX) rose 2 points, or 0.3%, to 1,907.90. The
Dow Jones Industrial Average (DJI) added 3 points 16,546. The
Nasdaq Composite (RIXF) inched up 8 points, or 0.2%, to
4,284.31.
Last week's big drops in the main benchmarks sent them below key
technical levels prompting fears of further substantial declines.
The S&P 500 pulled back more than 5% from its peak reached on
September 18.
Trading is expected to be muted as there is no data on economic
calendar on Monday, while bond markets are closed for Columbus Day
holiday.
Investors were expected 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.
"This is not a reversal in markets, but a pullback to important
levels -- 2,900 on the Eurostoxx 50 and 1,900 on the S&P 500,"
said Christian Tegllund Blaabjerg, senior strategist at Danske Bank
Markets. He said the S&P 500 will probably retest that level
either Monday or Tuesday.
Earnings boost to come? Blaabjerg 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 12%. 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 4%.
Hazmat-suit maker Lakeland Industries Inc. (LAKE) was up 12%
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
18%.
J.C. Penney Co. (JCP) shares rallied 4.2% after the retailer
said that 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.
U.S. infection-prevention company Steris (STE) said it's buying
U.K. rival Synergy Health for $1.9 billion in cash and stock.
Shares in Steris rose 1.1% See more potentially moving stocks 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 recent losses for crude oil (CLX4) were extended.
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