After on Friday finishing off the worst week of the year, stocks are getting slammed on Monday.
Near noon, the major indexes were off their lows of the day, and the Dow was down 105 points after falling by as many as 140, the S&P 500 was down 8 points, and the Nasdaq was off 37 points.
On Friday, the three major indexes closed more than 2% lower for the week.
CNBC noted that it was the first five-day losing streak for stocks in six months.
“Markets picking off … where they left off,” Accendo Markets wrote in morning commentary to clients. The analysts recalled that mixed earnings results, a strengthening dollar, and the disappointing new-home sales data all weighed on stocks last week.
And to start this week, Chinese stocks got clobbered. The Shanghai Composite fell 8.48% to clock its worst one-day percentage decline since February 2007. All of its sectors closed lower.
Gold is catching a bit of a break Monday, climbing above $1,100, up nearly 1%. But crude oil is still under pressure on oversupply concerns, and it fell to as low as $47.45, a drop of more than 1%.
Treasuries are rallying, and the yield on the benchmark 10-year note is down three basis points to 2.24%.
In economic data, durable-goods orders rose more than expected, led by an increase in transportation orders. Headline orders rose 3.4% (3.2% expected, -1.8% prior), and excluding the volatile transportation and defense components, orders rose 0.8% (0.4% expected, 0.4% prior).
The Dallas Fed manufacturing index came in at -4.6, missing the estimate for -7. Activity in Texas moderated, with a few survey respondents noting a summer slowdown that one person said was unusual.
We got more dealmaking news from the pharma industry on Monday morning, with the Israel-based Teva Pharmaceuticals scooping up Allergan’s generic drug unit for $40.5 billion. It’s the latest in a wave of consolidation that is sweeping the industry.
Teva shares were up more than 9% in early trading, and Allergan rallied about 6%. Teva dropped its bid for Mylan, whose shares slumped 14%.
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