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Nasdaq Deflates, Leads Weak Finish; Lennox, Seagate Outperform | Stock News & Stock Market Analysis

Stocks deflated into a weak close Monday, despite an early boost from global markets, as earnings season headed into its first week of full-on reporting.

XAutoplay: On | OffThe Nasdaq saw selling pick up sharply toward the end of the session, ending down 0.6%. The action in small caps was weaker yet, leaving the Russell 2000 with a 0.8% loss. The S&P 500 slid 0.4%, while the Dow Jones industrial average held to a 0.2% decline.

Volume was lower on the NYSE and higher on the Nasdaq, according to preliminary figures.

In Japan, stocks in Tokyo had surged at Monday’s U.S. open, after Prime Minister Shinzo Abe’s Liberal Democratic Party locked up a solid majority in parliament during elections there Sunday. Europe’s leading benchmarks posted uneven gains, despite insistence by leaders of Spain’s Catalonia region that they will deny attempts by the federal government to assert national control in the region this week.

Lennox, Seagate, Grupo Servielle Sail; GE, Hasbro Drop Anchor

Among U.S. stocks, the heating and air conditioning group posted the day’s strongest gain among industries, listed by Lennox International’s (LII) 7% gain in heavy trade following its third-quarter results.  The move tripped a breakout past a 185.33 buy point in a cup-with-handle base.

Toymakers posted the worst loss among industry groups during Monday’s session, hurt by Hasbro’s (HAS) 9% post-earnings sell off, which spilled over to Mattel (MAT), triggering a 3% decline — the largest drop among Nasdaq 100 companies.

Seagate Technology (STX) was the rock star on the Nasdaq 100, easily topping the index with a 13% gap up gain. Third-quarter revenue and earnings declined less than expected by analysts, and Chief Executive Dave Mosley said the company had entered a long-term supply agreement with Toshiba’s memory-chip business.

The stock ended the session 29% above an August low, and set to test possible resistance at the stock’s 40-week moving average.

Four Dow stocks took gains of better than 1%. Wal-Mart (WMT) led, up 1.4% to end 8% above an 82.09 buy point in a flat base.

General Electric (GE) took the Dow’s hardest hit, down more than 6% after a pair of analyst downgrades worsened the company’s transitional turmoil.

On the IBD 50, Argentine bank Grupo Servielle (SUPV) led, climbing almost 6% in light trade.  The stock was already extended, and ended the session 46% above an 18.54 buy point from a mid-August breakout.

China’s TAL Education (TAL) posted the largest loss among IBD 50 stocks, down 4% as the stock continued its pullback from its Oct. 16 high. Shares remained above their 10-week moving average.

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