Stocks are in the red in the U.S. And once again, the momentum names of the Nasdaq are leading the way down.
The Dow is down 153 points, or 0.9%.
The S&P 500 is down 22 points, or 1.1%.
The Nasdaq is down 70 points or 1.7%.
This extends the big sell-off we saw on Friday.
Amazon.com, Google, and Facebook are among the underperformers.
According to Goldman Sachs’ David Kostin, the big hedge funds are among the investors exposed to these losers.
“These high growth/high multiple stocks feature prominently on our list of “stocks that matter most” to hedge fund performance,” noted Kostin. “Having outperformed by 230 bp through February, our VIP basket dropped 2% in March while S&P 500 climbed 0.8%. Long positions trail by 98 bp YTD. Short holdings created problems by rising 130 bp more than S&P 500 YTD.”
There isn’t much on the economic calendar this week.
However, earnings season kicks off, and expectations have only been deteriorating.
“The estimated earnings decline for Q1 2014 of -1.2% is below the estimate of 4.3% growth at the start of the quarter (December 31),” noted FactSet’s John Butters. “Nine of the ten sectors have recorded a decrease in expected earnings growth due to downward revisions to earnings estimates, led by the Materials, Financials, and Consumer Discretionary sectors. The only sector that has seen an increase in projected earnings growth over this period is the Utilities sector.”
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