U.S. stocks had a rocky session, with the battered S&P 500 closing below its 200-day moving average. Bobbi Rebell reports.
U.S. stocks gyrated in a volatile session on Monday and closed sharply down as investors continued to fret over global economic growth and the timing of the federal reserve's interest rate hikes. The battered S&P 500 index closed below its 200-day moving average for the first time since November 16, 2012 and five of ten S&P sector indexes, including energy, now negative in 2014 . The Nasdaq off 5.7 percent in the last three days - is the worst close since October 2011. The Dow's 4 percent drop in three days is the worst since November 2011. The bond market was closed for the Columbus Day holiday. Italian-based auto maker Fiat Chrysler Automobiles debuted on the New York Stock Exchange and closed up 2.5 percent. Morningstar analyst Rich Hilgert: SOUNDBITE: RICH HILGERT, ANALYST, MORNINGSTAR, SAYING (English): "For investors willing to accept the risks of a cyclical turnaround story that does have a levered balance sheet, it does represent good value." Investors also scooped up shares of railroad operators, betting on more consolidation in that sector. The Wall Street Journal reported that CSX had rejected a merger proposal from Canadian Pacific Railway. GoPro shares tumbled. A news report suggested that a GoPro camera was responsible for the head injuries suffered by retired Formula 1 racing legend Michael Schumacher during a skiing accident last December. Among the other losers: eyewear maker Luxottica. Co-CEO Enrico Cavatorta plans to resign less than two months after taking the corner office. And T-Mobile US shares fell after Iliad abandoned its effort to buy the telecom carrier. On the CEO front, J.C. Penney named a Home Depot executive, Marvin Ellison, as president and as its next chief executive, and will succeed Mike Ullman on Aug. 1, 2015. In Europe, stocks broke a three-week slide. Airline stocks bounced back as oil prices fell.