Choppy Trading Leads To Mixed Close On Wall Street - U.S. Commentary

(RTTNews) - Following the slight uptick that was seen last week, stocks showed a lack of direction throughout the trading session on Monday. The choppy trading extended the roughly sideways trend shown by the markets over the past two weeks.

The major averages eventually ended the session on opposite sides of the unchanged line. While the Nasdaq inched up 9.39 points or 0.2 percent to 4,592.29, the Dow edged down 25.94 points or 0.2 percent to 17,111.42 and the S&P 500 slipped 6.17 points or 0.3 percent to 2,001.54.

The lackluster performance on Wall Street came as traders continued to express uncertainty about the near-term outlook for the markets following last week's disappointing jobs report.

While many analysts expect the weak job growth reported last Friday to be a temporarily blip in light of other largely upbeat economic data, traders still seem reluctant to continue buying stocks.

The Dow and the S&P 500 both remain near record highs, while the Nasdaq is close to its best levels in over fourteen years.

The choppy trading also came amid a quiet day on the U.S. economic front, with traders looking ahead to the release of a closely watched report on retail sales later in the week.

Nonetheless, resource stocks saw notable weakness on the day following the release of Chinese trade data pointing to sluggish domestic demand in the world's second largest economy.

While the report from Chinese Customs said exports jumped 9.4 year-over-year in August, imports unexpectedly fell by 2.4 percent compared to the same month a year ago.

The Chinese trade surplus subsequently widened to a record high $49.8 billion in August from $47.3 billion in July.

Among individual stocks, shares of Campbell Soup (CPB) came come under pressure after the soup maker reported weaker than expected fourth quarter sales and provided disappointing guidance.

Auto giant Ford (F) also moved to the downside after Morgan Stanley downgraded its rating on the company's stock to Underweight from Overweight.

On the other hand, shares of Yahoo (YHOO) moved notably higher after Alibaba said it plans to raise as much as $21.1 billion in an initial public offering. Yahoo holds a 22.5 percent stake in the Chinese e-commerce company.

Sector News

Despite the lack of direction shown by the broader markets, substantial weakness was visible among gold stocks. The NYSE Arca Gold Bugs Index plunged by 2.9 percent, hitting its lowest closing level in well over two months.

The weakness among gold stocks came amid a notable decrease by the price of the precious metal, with gold for December delivery sliding $13 to $1,254.30 an ounce.

Energy stocks also saw significant weakness on the day amid a decrease by the price of crude oil. Crude for October delivery fell $0.63 to an eight-month closing low of $92.66 a barrel.

On the other hand, brokerage stocks moved notably higher over the course of the session, driving the NYSE Arca Broker/Dealer Index up by 1.3 percent. GFI Group (GFIG) helped lead the sector higher, jumping by 10.6 percent.

Biotechnology, networking, and internet stocks also saw some strength on the day, contributing to the modest gain posted by the tech-heavy Nasdaq.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index crept up by 0.2 percent, while Hong Kong's Hang Seng Index edged down by 0.2 percent.

The major European markets also ended the day mixed. While the German DAX Index inched up by 0.1 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index both dipped by 0.3 percent.

In the bond market, treasuries once again turned lower over the course of the session after seeing early strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by nearly a basis point to 2.469 percent.

Looking Ahead

Amid another quiet day on the U.S. economic front, trading activity may remain somewhat subdued on Tuesday, potentially leading to another choppy trading session.