NEW YORK (TheStreet) -- U.S. stocks were exhibiting wild swings between gains and losses Friday morning, reflecting seasonal volatility, concerns about global growth, and excitement over third-quarter earnings.
The S&P 500I:GSPC fell 0.48%. Widespread jitters about a cooling Chinese economy and a questionable economic recovery in Europe coming just as U.S. quantitative easing nears its end has brought the S&P down by over 2% so far this week. The index is on track for a third straight weekly loss. According to Wells Fargo, U.S. equities have experienced a loss of roughly $750 billion, or 4.1% in value, since reaching its peak on Sept. 18.
Peter Cardillo, chief market economist at Rockwell Global Capital, said, however, that the downward move so far remains within the range of most of the recent pullbacks.
"The fear of the global economy weakening further and the disinflationary atmosphere that is gripping Euro-Land has deflated markets hitting hard oil prices and weighing on equities around the globe," said Cardillo. "However, with the U.S. economy still not showing any signs of losing much economic ground, the chances of a major correction are still in question. In other words, we expect earnings to lift the market sentiment."
Meanwhile, Ryan Detrick, strategist at research firm See It Market, noted that the market has seen five 1% moves up or down in just seven trading days in October vs. five total in the previous five months. Friday's moves have so far confirmed the trend of "violent moves in very short timeframes," he said.
Telecom equipment makers and their chip suppliers were seeing more pain after Juniper (JNPR) - Get Report and Procera (PKT) issued third-quarter warnings -- the latest bad earnings news for an industry that has seen plenty due to soft wireline capital expenditures. Juniper was off more than 8% while Procera dropped 33.33%.
Analysts were defending Juniper, arguing that the bad news has been priced in and that telecom capex is likely to improve in 2015. Bulls have argued that Web and mobile traffic growth as well as software-defined networking and network functions virtualization investments will ultimately boost capex in spite of industry-service revenue pressures.
On Thursday, Wall Street was victim to a broad-based selloff as market bears sold on global growth fears and obliterated all sense of Federal Reserve-inspired optimism fostered a day earlier. The S&P 500 suffered its worst day in in six months and closed more than 2% lower. The Dow Jones Industrial Average unloaded more than 300 points and closed down 1.95%, its seventh fall in the past nine sessions.
The Labor Department reported Friday that U.S. import prices fell 0.5% in September vs. the 0.7% decline expected by economists. The latest report, the third straight negative reading, demonstrated that inflationary pressures were falling amid continued evidence of a slowing global economy and an appreciating U.S. dollar.
Earnings season will be in full gear next week with all major banks reporting their most recent quarters. Citigroup (C) - Get Report , JPMorgan (JPM) - Get Report and Wells Fargo (WFC) - Get Report are scheduled for Tuesday morning; Goldman Sachs (GS) - Get Report Thursday morning, and Morgan Stanley (MS) - Get Report before market open Friday.
Other notable earnings next week include Intel (INTC) - Get Report on Tuesday; American Express (AXP) - Get Report , eBay (EBAY) - Get Report and Netflix (NFLX) - Get Report Wednesday afternoon; and Google (GOOGL) - Get Report after the bell Thursday.
-- By Andrea Tse in New York