Wall St. ends down on Hong Kong tensions, Ford outlook
Credit: Reuters/Brendan McDermid
Traders work on the floor of the New York Stock Exchange September 22, 2014.
* Equities have been volatile in recent sessions, with major indexes closing out their worst week in eight last week despite a sharp advance on Friday. Daily moves on the S&P 500 have been sharply above average of late, and the benchmark index closed under its 50-day moving average one day last week.
* While the S&P is only 1.4 percent away from a record close hit earlier this month, many investors have expressed concerns about the recent trend in equities. The S&P is below its 14-day moving average, a sign of weak near-term momentum, while the Russell 2000 is down more than 7 percent from its closing record, leading to worries that those losses could spread throughout the market.
* Investors closely watched the situation in Hong Kong, where China faced one of its biggest political challenges since the Tiananmen Square massacre as hundreds of democracy protesters faced down tear gas and police baton charges. Growth in China has been a major driver of global share gains in recent years, although recent data has pointed to slowing conditions. An extended period of unrest could raise further questions about the economy's prospects.
* The Hang Seng Index fell 1.9 percent, bringing its quarter-to-date losses to 6.1 percent, while an index of shares in Shanghai rose 0.4 percent.
* In company news, Encana Corp said it would buy Athlon Energy Inc for $5.93 billion in cash.
* New research shows Merck & Co's Keytruda drug, the first in a new wave of immune-boosting medicines to be approved for treating melanomas in the United States, also has potential in stomach cancer.
Futures snapshot at 6:47:
* S&P 500 e-minis were falling 8 points, or 0.4 percent, with 138,934 contracts changing hands.
* Nasdaq 100 e-minis were down 17 points, or 0.42 percent, in volume of 24,060 contracts.
* Dow e-minis were down 72 points, or 0.42 percent, with 23,053 contracts changing hands.
(Editing by Lisa Von Ahn)
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