NEW YORK (CNNMoney)
This follows a 2.6% sell-off Friday in the Nasdaq, and 1% slides in the S&P and Dow. The carnage was ironic, especially after the Dow and the S&P both touched intraday record highs Friday morning.
Momentum stocks, especially in the tech sector, are being watched closely again today after many were crushed on Friday. Tesla, (TSLA) Netflix (NFLX), and Amazon.com (AMZN, Fortune 500) are all lower again this morning.
The general theory is that investors are rotating out of growth stocks and targeting value stocks.
But in a note to clients this morning Bespoke Investment Group said the momentum bloodbath should be contained, "We don't think contagion from the relatively small sector of the market since the momentum sell-off began is likely to create a massive decline in the more staid sectors of the stock market."
Related: CNNMoney Tech30
The pulse of the market will also be impacted this week as earnings season commences. Alcoa (AA, Fortune 500) kicks it off tomorrow, and some of the big banks will report their first-quarter earnings later in the week. Financial stocks are expected to turn in a weaker performance.
Overall, earnings for the companies in the S&P 500 are expected to be down 1.2% in the first quarter, according to estimates from FactSet.
For all the doom and gloom, stock experts surveyed by CNNMoney say the bull market still has room to run. Most expect the S&P 500 to gain 6.5% this year.
Related: Fear & Greed Index gripped by fear
As for individual names today: shares of Mannkind (MNKD) are sharply lower. The Food and Drug Administration is extending its review of Mannkind's Afrezza inhaled insulin drug by at least three months. The stock shot up last week after a favorable review from a panel that advises the FDA.
Despite talk of Yahoo (YHOO, Fortune 500) joining some of its rivals by getting into the TV business and producing original content, the stock opened down today, although that is in line with most other tech stocks.
In what is being blamed as a spillover effect from Michael Lewis' new book bashing high-frequency trading, E*Trade (ETFC), Charles Schwab (SCHW, Fortune 500) and TD Ameritrade (AMTD)continue to slide on fears additional regulations could impact their business.
Roche Holding (RHHBF) shares are also slipping. That's after the Swiss drug company said it would acquire Massachusetts-based IQuum for $450 million. IQuum specializes in molecular diagnostics.
Cement stocks provided one bright spot, with Lafarge (LFRGY) and Holcim (HCMLF)both managing solid gains after they agreed to a merger that would create the world's biggest construction materials group.
Related: Stock experts say the bull isn't dead yet
European markets and Asian markets were weaker, taking their cue from Friday's late selloff on Wall Street. Japan's Nikkei ended 1.7% down, while Germany's DAX was trading 1.5% lower during the morning.
First Published: April 7, 2014: 9:55 AM ET
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