Investors had a delayed reaction to Friday's jobs report which shored up a December rate hike. The realization the Federal Reserve might move off of crises-level rates by year's end hit stocks hard. The Dow erased all year-to-date gains. Norfolk Southern (NSC) spiked on reports Canadian Pacific Railway (CP) is interested in a merger. The second-biggest railroad company in Canada has reportedly already held early talks with its U.S. industry peer. Mallinckrodt (MNK) shares plummeted after short seller Citron Research dragged the drugmaker into the Valeant Pharmaceuticals (VRX) scandal. The short seller previously alleged Valeant had committed accounting fraud through its Philidor subsidiary and today said Mallinckrodt was a 'far worse offender,' of the same alleged scam.
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How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.