US stocks open mostly lower after last week’s turmoil

Investors look at stock price movements at a securities company in Beijing on Friday. (AFP pic)

NEW YORK: Wall Street stocks were mostly lower early Monday as investors debated whether the market has fully pivoted from a dramatic two-day selloff in the middle of last week.

About 10 minutes into trading, the Dow Jones Industrial Average was up less than 0.1% to 25,347.75.

The broad-based S&P 500 slipped 0.2% to 2,761.41 while the tech-rich Nasdaq Composite Index dropped 0.6% to 7,450.30.

The major US indices lost about 4% last week following a brutal two-day rout midweek that was followed by a solid rally on Friday.

Analysts attributed the turbulence to worries over higher US interest rates and the fallout from trade wars.

A Goldman Sachs note released Sunday night said equity fundamentals were “strong” and predicted “limited further downside.”

But Sam Stovall, chief investment strategist of CFRA Research, said while there were some indications among the selling trends that stocks had become “oversold,” there were other reasons to think “the full decline might not be over.”

US data showed retail sales in September inched higher by 0.1%, well below the 0.6% gain projected by analysts.

Shares of defence companies Harris and L3 Technologies rose after they announced they would merge into the sixth-largest US defence company and one of the 10 largest in the world, with 48,000 employees and clients in 100 countries. L3 gained 7.6% and Harris jumped 8.4%.