U.S. Stocks Turning In Lackluster Performance After Last Week's Pullback

Stocks have shown a lack of direction over the course of the trading session on Monday, with the major averages bouncing back and forth across the unchanged line following the notable pullback seen during the previous week.

Currently, the major averages are turning in a mixed performance. While the Dow is down 35.21 points or 0.1 percent at 33,692.22, the S&P 500 is up 4.88 points or 0.1 percent at 4,353.21 and the Nasdaq is up 37.06 points or 0.3 percent at 13,529.58.

A lack of major U.S. economic data may be keeping some traders on the sidelines as they look ahead to the release of several key reports later in the week.

In the coming days, traders are likely to keep a close eye on reports on durable goods orders, consumer confidence, new home sales and pending home sales.

The Commerce Department is also due to release its report on personal income and spending in the month of May, which includes a reading on inflation said to be preferred by the Federal Reserve.

The consumer price inflation data could significantly impact opinions regarding whether the Fed will follow through on its forecast interest rate hikes.

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

Biotechnology stocks have shown a substantial move to the downside, however, with the NYSE Arca Biotechnology Index plunging by 2.8 percent.

Significant weakness is also visible among pharmaceutical stocks, as reflected by the 1.3 percent drop by the NYSE Arca Pharmaceutical Index.

Drug giant Pfizer (PFE) is posting a steep loss after announcing the discontinuation of clinical development of its experimental obesity and diabetes drug, lotiglipron.

On the other hand, oil service stocks have shown a strong move to the upside, driving the Philadelphia Oil Service Index up by 1.7 percent.

Semiconductor stocks are also seeing considerable strength on the day, resulting in a 1.7 percent jump by the Philadelphia Semiconductor Index.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan’s Nikkei 225 Index dipped by 0.3 percent, while China’s Shanghai Composite Index slumped by 1.5 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the French CAC 40 Index is up by 0.3 percent, the U.K.’s FTSE 100 Index and the German DAX Index are both down by 0.1 percent.

In the bond market, treasuries have pulled back near the unchanged line after seeing early strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 3.733 percent.

Source: Read Full Article