Stock Market Lower As Facebook Whistleblower Woes Grow; Merck Still

The stock market was lower Monday morning, with technology shares vastly lower amid a backlash for Facebook (FB).

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The S&P 500 fell 0.5% as some major stocks crawled back after rebounding on Friday, including Microsoft (MSFT) and Apple (AAPL). Alphabet (GOOGL) undercut Friday’s low and is at the lowest since Aug. 3.

Facebook stock gapped down to a loss of more than 3% and is at the lowest price since June, deep below the 50-day moving average.

A company whistleblower was identified for the first time after she appeared on CBS’s “60 Minutes.” Frances Haugen also was named in The Wall Street Journal, which used her as the main source for articles critical of the company’s handling of potential harm caused by the platform.

In the retail sector, Amazon.com (AMZN) fell 1.6%, leaving shares on track for a sixth straight loss. The stock is now trading below the 200-day moving average.

The Nasdaq fell 1.5% as technology stocks were broadly out of favor. Technology Select Sector SPDR (XLK) fell nearly 2%. Communications Services SPDR (XLC) fell 1.7%.

Merck Leads Dow Higher

But the Dow Jones Industrial Average eased 0.1% as Merck (MRK) continued to lead the index. Merck shares rose nearly 3% after Friday’s 8.4% surge, which followed promising trials of a Covid-19 antiviral pill.

Because Merck gapped above its 79.33 buy point, the high of the first five minutes of Friday’s trading, or 82.24, works as an alternative entry. That would mean the realistic buy range goes to 86.35.

The Russell 2000 dropped 0.5%. Volume fell on the NYSE and Nasdaq compared with the same time on Friday.

Stock market uncertainty rested on Washington, D.C., where Congress is debating raising the debt ceiling as it faces a deadline. It is also discussing a massive spending package. Reports said Democrats are considering reducing the scale of the spending bill to improve its chances for approval.

Innovator IBD 50 ETF (FFTY) slid 1.7%. Energy and financial stocks rose on the index. But eight components — mostly techs — fell 4% or more. Upstart Holding (UPST) dipped below its 21-day line. MongoDB (MDB) slid nearly 6%. InMode (IMND) remains volatile, off more than 5%.

Asia Stock Markets Lower, Higher In Europe

In Asia, major bourses fell as more uncertainty surrounded debt-burdened China Evergrande Group.

Hong Kong’s Hang Seng Index fell 2.2%, and the Tokyo Nikkei 225 Index lost 1.1%. Markets in mainland China are closed until Friday for the Golden Week holiday.

Shares of China Evergrande and its property-management unit were halted in Hong Kong trading Monday, according to Dow Jones. An announcement about a possible takeover bid was pending.

The Stoxx…