Stocks Close Flat Following Choppy Trading Day - U.S. Commentary

(RTTNews) - After initially coming under pressure, stocks showed a lack of direction during trading on Monday. The major averaged spent the day bouncing back and forth across the unchanged line.

While the Nasdaq inch up 11.64 points or 0.2 percent to 5,840.37, the Dow slipped 45.74 points or 0.2 percent to 20,550.98 and the S&P 500 edged down 2.39 points or 0.1 percent to 2,341.59.

The initial drop by stocks came amid weakness overseas following the decision by Republican leaders to withdraw their bill to repeal and replace Obamacare.

Late in the trading day last Friday, House Republican leaders decided to withdraw the bill amid indications of a lack of support.

The move came despite vigorous efforts by President Donald Trump and House Speaker Paul Ryan, R-Wis., to build support for the legislation.

A number of more conservative lawmakers opposed the bill amid criticism that it did not go far enough to repeal the provisions of Obamacare.

Moderate Republicans were also concerned about predictions the plan would cause millions of people to lose their insurance.

Even if the Republican healthcare bill had been approved by the House, the legislation was expected to face an even tougher uphill battle in the Senate.

The inability to advance the bill has cast doubt on Trump's ability to deliver on promises of increased infrastructure spending, tax cuts and deregulation.

The economic calendar is relatively quiet today but picks up as the week progresses, with traders likely to keep an eye on reports on consumer confidence, pending home sales and personal income and spending.

Speeches by a number of Federal Reserve officials are also likely to attract attention after the central bank's interest rate hike earlier this month.

In overseas trading, stock markets across the Asia-Pacific region moved lower on Monday. Japan's Nikkei 225 Index tumbled by 1.4 percent, while Hong Kong's Hang Seng Index slid by 0.7 percent.

The major European markets also moved to the downside on the day. While the French CAC 40 Index edged down by 0.1 percent, the U.K.'s FTSE 100 Index and the German DAX Index both fell by 0.6 percent.

In the bond market, treasuries pulled back off their best levels but continue to see modest strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.7 basis points at 2.373 percent.