Business Technology

Saturday 30 August 2014

Global stock falls in wake of Friday's tech sell-off

Worst drop for Nasdaq and benchmark S&P index since February

Published 07/04/2014 | 15:32

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Worst drop for Nasdaq and benchmark S&P index since February
Worst drop for Nasdaq and benchmark S&P index since February

US stocks were set for a lower open on Monday, putting the S&P 500 on track for its third straight decline.

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Declines in momentum names such as Netflix and TripAdvisor overshadowed the relatively strong March payrolls report on Friday, leaving investors anxious about how much further they may fall.

Facebook lost 1.3pc to $56 in premarket trade.

Earnings season gets under way this week, with earnings expected from financials JPMorgan Chase & Co and Wells Fargo & Co, as well as retailer Bed, Bath & Beyond.

S&P 500 companies' first-quarter earnings are projected to have increased just 1.2pc from a year ago, Thomson Reuters data showed.

The forecast is down sharply from the start of the year, when growth was estimated at 6.5pc.

A lackluster first-quarter earnings season impacted by harsh winter weather could spark a pullback, according to some analysts, with investors looking for optimism for the second quarter.

S&P 500 e-mini futures fell 7.5 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures lost 54 points and Nasdaq 100 futures declined 29.25 points.

Specialty pharmaceuticals company Mallinckrodt Plc agreed to buy drugmaker Questcor Pharmaceuticals Inc for about $5.6bn to gain access to its multiple sclerosis drug, Acthar Gel.

Questcor shares surged 31.5pc to $89.25 while Mallinckrodt rose 8.5pc to $67.80 in premarket.

MannKind Corp slumped 10.2pc to $6.17 before the opening bell.

The company said the U.S. Food and Drug Administration extended the review date of its inhaled insulin treatment by three months.

Pfizer Inc shares fell 2.8pc to $31.25 in premarket trade.

The company's experimental breast cancer drug in a clinical trial nearly doubled the amount of time patients lived without their disease getting worse, but overall survival was not yet shown to be statistically significant, researchers said.

Reuters

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