Investors looking for an oversold bounce Monday are going to be disappointed, as heavy selling overseas looks set to carry through to the New York open.
Index futures recently showed the
trading about 6 points below fair value, while the Nasdaq 100 was set for a 9-point decline. The 10-year Treasury bond was up 5/32 in price to yield 4.22%, while the dollar was lower against the yen and euro. Oil fell 67 cents to $49.82 a barrel in electronic Nymex trading.
Overseas markets were under serious pressure, with London's FTSE 100 recently down 1.8% to 4804 and Germany's Xetra DAX losing 2.5% to 4206. In Asia, Japan's Nikkei plunged 3.8% overnight to 10,938 and Germany's Xetra DAX lost 2.1% to 13,355.
Coming off three straight losses of 100 more points on the
talk over the weekend turned to the possibility of a technical bounce from stocks' current lows. After losing about 4% over the last three sessions, the Dow, S&P 500 and
all begin the day at their worst levels of the year, beaten back by a string of disappointing earnings news in the technology sector.
One hallmark of the current downturn has been the market's relative insensitivity to positive news. Friday's rout occurred despite solid quarters from
Bank of America
said first-quarter earnings soared 74% from a year ago to $4.7 billion, or $1.14 a share, beating estimates by about a dime.
Less impressive was
, which swung to a first-quarter loss of $3.7 billion, or 2 cents a share, from a year-ago profit of $6.5 billion, or 3 cents a share. Analysts had been forecasting earnings of 4 cents a share. Revenue fell 4% from a year ago to $454.9 million, about $34 million below estimates.
Despite the market's travails the mergers and acquisitions bug continues to bite in the software space. In the latest deal, graphics pioneer
agreed to buy
for $3.4 billion in stock. Adobe will exchange 0.69 share for each Macromedia share. Based on Friday's closing price, the price comes out to about $41.86 per Macromedia share.