Major Averages Slide Firmly Into The Red In Early Trading

(RTTNews) - After ending the previous session notably lower, stocks have seen some further downside in early trading on Friday. The major averages have slid firmly into negative territory, with the Dow and the S&P 500 hitting their lowest levels in over a month.

The continued weakness on Wall Street is partly due to a sharp pullback by overseas markets, with stocks in both Asia and Europe seeing significant weakness on the day.

Yesterday's disappointing reading on Chinese manufacturing activity continues to generate negative sentiment regarding the outlook for the global economy.

A sell-off in emerging-market currencies is also weighing on the markets amid concerns about China, political unrest, and U.S. monetary policy.

Transportation stocks have shown a substantial move to the downside, dragging the Dow Jones Transportation Average down by 2.8 percent. Kansas City Southern (KSU) is leading the sector lower after reporting weaker than expected fourth quarter earnings.

Steel, computer hardware, defense, and biotech stocks are also seeing significant weakness in early trading, moving lower along with most of the other major sectors.

The major averages have recently bounced off their lows for the young session but continue to post sizable losses. The Dow is down 105.54 points or 0.7 percent at 16,091.81, the Nasdaq is down 40.39 points or 1 percent at 4,178.48 and the S&P 500 is down 14.70 points or 0.8 percent at 1,813.76.