Stocks Close Modestly Higher Following Lackluster Session - U.S. Commentary

(RTTNews) - Following the strong upward move seen last week, stocks turned in a lackluster performance during trading on Monday before closing modestly higher. The gains on the day lifted the Dow and the S&P 500 to their best closing levels in almost two months.

The major averages finished the choppy trading day in positive territory. The Dow rose 47.37 points or 0.3 percent to 17,131.86, the Nasdaq edged up 8.17 points or 0.2 percent to 4,838.64 and the S&P 500 inched up 2.57 points or 0.1 percent to 2,017.46.

The modestly higher close on Wall Street extended the upward trend seen over the past couple weeks, with stocks recovering from the sell-off seen in August.

Trading activity remained relatively subdued, however, with many traders sticking to the sidelines amid the Columbus Day holiday and a lack of major U.S. economic data.

Traders may also have been reluctant to make any significant moves as the earnings season is due to pick up steam in the coming days.

The week will see the release of quarterly results from several financial giants, including JP Morgan (JPM), Bank of America (BAC), Wells Fargo (WFC), Citigroup (C), and Goldman Sachs (GS).

Intel (INTC), Johnson & Johnson (JNJ), General Electric (GE), and Netflix (NFLX) are also among the big-name companies due to report their results this week.

Later in the week, trading could also be impacted by reports on retail sales, industrial production, and producer and consumer price inflation.

Among individual stocks, shares of Infosys (INFY) fell sharply after the software services firm reported better than expected second quarter results but lowered its dollar revenue growth guidance. The company also announced the resignation of its CFO Rajiv Bansal.

Social media giant Twitter (TWTR) also posted a steep loss on the day amid a report from Re/code that the company plans to announce layoffs across multiple departments this week.

On the other hand, shares of EMC Corp. (EMC) extended their recent upward move on news the data storage company has agreed to be acquired by computer giant Dell for $67 billion.

Sector News

Despite the modestly higher close by the broader markets, substantial weakness was visible among gold stocks. The NYSE Arca Gold Bugs Index plummeted by 3.6 percent after ending last Friday's trading at a nearly three-month closing high.

The sharp pullback by gold stocks came even though the price of gold for December delivery climbed $8.60 to $1,164.50 an ounce.

Energy stocks also came under pressure on the day, moving lower along with the price of crude oil. Crude for November delivery plunged $2.53 to $47.10 a barrel.

Meanwhile, airline stocks showed a strong move to the upside on the day, driving the NYSE Arca Airline Index up by 2.3 percent. With the gain, the index ended the session at its best closing level in two months.

SkyWest (SKYW) helped to lead the airline sector higher, with the regional airline soaring by 11.4 percent to a six-year high.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Monday. Hong Kong's Hang Seng Index jumped by 1.2 percent, while China's Shanghai Composite Index surged up by 3.3 percent. The Japanese market was closed for a holiday.

Meanwhile, the major European markets turned in a mixed performance on the day. While the German DAX Index edged up by 0.2 percent, the U.K.'s FTSE 100 Index fell by 0.7 percent and the French CAC 40 Index dipped by 0.3 percent.

The U.S. bond market was closed on the day due to the Columbus Day holiday and will reopen on Tuesday.

Looking Ahead

While Tuesday represents another quiet day on the U.S. economic front, healthcare giant Johnson & Johnson is due to release its third quarter results before the start of trading.