MARKET SNAPSHOT: U.S. Stocks Flip-flop After Brutal Losses

By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- The U.S. stock market wavered between gains and losses in early trading on Monday, following a volatile week of trading triggered by global economic growth concerns.

After opening higher, stocks dipped into the red. The S&P 500 (SPX) was off 4 points, or 0.2%, at 1,901.83. The Dow Jones Industrial Average (DJI) slipped 12 points, or 0.1%, to 16,529.85. The Nasdaq Composite (RIXF) lost 15 points, or 0.4%, to 4,260.16.

Last week's big drops in the main benchmarks sent them below key technical levels prompting fears of further substantial declines. The S&P 500 pulled back more than 5% from its peak reached on September 18.

Trading is expected to be muted as there is no data on economic calendar on Monday, while bond markets are closed for Columbus Day holiday.

Investors were expected to turn their attention to earnings season, which gets under way in earnest on Tuesday, with major banks such as J.P. Morgan Chase & Co.(JPM) and Citigroup Inc. (C) among those due to report.

"This is not a reversal in markets, but a pullback to important levels -- 2,900 on the Eurostoxx 50 and 1,900 on the S&P 500," said Christian Tegllund Blaabjerg, senior strategist at Danske Bank Markets. He said the S&P 500 will probably retest that level either Monday or Tuesday.

Earnings boost to come? Blaabjerg expects the earnings season to provide a boost for U.S. stocks. "In the U.S., EPS (earnings per share) growth expectations are 5% year-over-year, which should easily be beaten, providing equity markets with renewed hope after disappointing macro numbers," he said.

Federal Reserve Vice Chairman Stanley Fischer was among several Fed officials who spoke over the weekend. He said Saturday that an eventual rate rise from the central bank won't damage the global economy. Also: Fed's Evans: Stronger dollar is a headwind

Stocks to watch:

CSX Corp. (CSX) jumped 12%. Citing sources, The Wall Street Journal reported that Canadian Pacific Railway Ltd. (CP) approached CSX about a tie-up. CSX rebuffed the overture, made in the past week, those sources said. It's unclear if Canadian Pacific will pursue it.

Shares of Tekmira Pharmaceuticals Corp. (TKMR) , one of the pharmaceutical companies whose drug TKM-Ebola has been used in the fight against the deadly virus, was up 2.6%.

Hazmat-suit maker Lakeland Industries Inc. (LAKE) was up 12% after a 126% jump last week on fears related to the Ebola virus. In addition, shares of face-mask maker Alpha Pro Tech (APT) rallied 14%.

J.C. Penney Co. (JCP) shares jumped as high as 6% before the bell, but trimmed those gains to 1.8% after the retailer said that Home Depot executive Marvin Ellison will take over as a chief executive next year, succeeding current CEO Myron Ullman. The move comes days after J.C. Penney cut its sales forecast for the current quarter. See more potentially moving stocks in Movers and Shakers

Other markets: European stocks traded mostly flat, while Hong Kong stocks ( closed higher after strong Chinese trade data. Asian stocks finished mostly lower. Gold (GCZ4) futures were slightly higher, while recent losses for crude oil (CLX4) were extended.

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