WASHINGTON (dpa-AFX) - Stocks have shown a lack of direction over the course
of trading on Monday, extending the lackluster performance seen to close out the
previous week. The major averages have spent the day bouncing back and forth
across the unchanged line.

Currently, the major averages are narrowly mixed. While the Nasdaq is up 8.83
points or 0.1 percent at 17,697.71, the S&P 500 is down 2.33 points or less than
a tenth of a percent at 5,429.27 and the Dow is down 77.29 points or 0.2 percent
at 38,511.87.

The choppy trading on Wall Street comes as traders take a moment to assess the
recent activity in the markets along with the near-term outlook.

The Nasdaq and the S&P 500 set new record highs last week and posted strong
weekly gains, while the narrower Dow moved lower for the third time in the last
four weeks.

Investors may also be reluctant to make significant moves ahead of the release
of some key economic data in the coming days.

Reports on retail sales and industrial production are likely to be in the
spotlight, while reports on homebuilder confidence, housing starts and existing
home sales may also attract attention.

The upcoming Juneteenth holiday may also be contributing to lighter than usual
trading activity, as the markets will be closed on Wednesday.

On the U.S. economic front, the Federal Reserve Bank of New York released a
report this morning showing New York manufacturing activity contracted at a
notably slower rate in the month of June.

The New York Fed said its general business conditions index climbed to a
negative 6.0 in June from a negative 15.6 in May, although a negative reading
still indicates contraction. Economists had expected the index to rise to a
negative 9.0.

Despite the continued contraction in current activity, the New York Fed said
optimism about the six-month outlook picked up to its highest level in more than
two years.

Sector News

Most of the major sectors are showing only modest moves on the day, contributing
to the lackluster performance by the broader markets.

Telecom stocks have shown a significant move to the downside, however, with the
NYSE Arca North American Telecom Index falling by 1.5 percent to its lowest
intraday level in over a month.

Notable weakness is also visible among gold stocks, as reflected by the 1.0
percent loss being posted by the NYSE Arca Gold Bugs Index. The weakness in the
sector comes amid a decrease by the price of gold.

On the other hand, oil service stocks have moved to the upside along with the
price of crude oil, driving the Philadelphia Oil Service Index up by 1.1
percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly
lower during trading on Monday. Japan's Nikkei 225 Index tumbled by 1.8 percent,
while China's Shanghai Composite Index slid by 0.6 percent.

Meanwhile, the major European markets are turning in a mixed performance on the
day. While the U.K.'s FTSE 100 Index is down by 0.2 percent, the German DAX
Index is up by 0.2 percent and the French CAC 40 Index is up by 0.5 percent.

In the bond market, treasuries are giving back ground after trending higher over
the past several sessions. As a result, the yield on the benchmark ten-year
note, which moves opposite of its price, is up by 7.6 basis points at 4.289
percent.



Copyright(c) 2024 RTTNews.com. All Rights Reserved

Copyright RTT News/dpa-AFX