WASHINGTON (dpa-AFX) - After moving modestly higher earlier in the session,
stocks have shown a lack of direction over the course of the trading day on
Monday. The major averages have been bouncing back and forth across the
unchanged line after posting strong gains last week.

Currently, the major averages are narrowly mixed. While the Nasdaq is up 32.27
points or 0.2 percent at 16,373.14, the S&P 500 is down 4.73 points or 0.1
percent at 5,217.95 and the Dow is down 80.51 points or 0.2 percent at
39,432.33.

The early strength on Wall Street came as stocks continued to benefit from
recent upward momentum, which has led to an eight-day winning streak for the
Dow.

Renewed optimism about an interest rate cut by Federal Reserve in the coming
months has contributed to the recent strength.

Buying interest has waned over the course of the session, however, as key
inflation data due this week could have a significant impact on the outlook for
rates.

The Labor Department is scheduled to release its reports on producer and
consumer price inflation on Tuesday and Wednesday, respectively.

Economists expect producer prices to rise by 0.3 percent in April after edging
up by 0.2 percent in March, while the annual rate of growth is expected to tick
up to 2.2 percent from 2.1 percent.

Consumer prices are expected to climb by 0.4 percent in April, matching the
increase seen in March. Core consumer prices, which exclude food and energy
prices, are expected to rise by 0.3 percent in April after climbing by 0.4
percent in March.

The annual rate of consumer price growth is expected to dip to 3.4 percent in
April from 3.4 percent in March, while the annual rate of core consumer price
growth is expected to slow to 3.6 percent from 3.8 percent.

Remarks by Fed Chair Jerome Powell may also attract attention this week along
with reports on retail sales, industrial production and housing starts.

Among individual stocks, shares of GameStop (GME) are soaring after social media
persona 'Roaring Kitty,' whose posts helped spark a frenzy of activity in the
video game retailer's stock in 2021, posted on X for the first time in three
years.

Website building and hosting company Squarespace (SQSP) has also surged after
entering into a definitive agreement to go private in an all-cash transaction
valued at approximately $6.9 billion.

Sector News

Airline stocks continue to turn in some of the market's best performances on the
day, with the NYSE Arca Airline Index surging by 2.6 percent.

American Airlines (AAL) and United Airlines (UAL) are posting notable gains
after HSBC initiated coverage of the stocks with Buy ratings.

Notable strength also remains visible among biotechnology stocks, with the NYSE
Arca Biotechnology Index climbing by 1.1 percent. The index reached its best
intraday level in a month earlier in the session.

Shares of Incyte (INCY) have spiked by 7.5 percent after the biotechnology
company announced its Board of Directors approved a share repurchase
authorization of $2.0 billion.

Meanwhile, gold stocks have come under pressure over the course of the session,
dragging the NYSE Arca Gold Bugs Index down by 1.1 percent. The weakness in the
sector comes amid a steep drop by the price of gold.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a
mixed performance on Monday. Japan's Nikkei 225 Index edged down by 0.1 percent
and China's Shanghai Composite Index slipped by 0.2 percent, while Hong Kong's
Hang Seng Index advanced by 0.8 percent.

Meanwhile, the major European markets all moved modestly lower on the day. While
the French CAC 40 Index slipped by 0.1 percent, the German DAX Index and the
U.K.'s FTSE 100 Index both dipped by 0.2 percent.

In the bond market, treasuries have rebounded following the pullback seen last
Friday. Subsequently, the yield on the benchmark ten-year note, which moves
opposite of its price, is down by 2.9 basis points at 4.475 percent.



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