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

(RTTNews) - After showing a lack of direction throughout much of the session, stocks ended Monday's trading modestly lower. With the drop on the day, the major averages fell to their lowest closing levels in a month.

The Dow dipped 51.98 points or 0.3 percent to 18,086.40, the Nasdaq fell 14.34 points or 0.3 percent to 5,199.82 and the S&P 500 slid 6.48 points or 0.3 percent to 2,126.50.

The lower close on Wall Street came following the release of some disappointing U.S. economic data, including a report from the Federal Reserve showing a smaller than expected increase in industrial production in September.

The Fed said industrial production edged up by 0.1 percent in September after falling by a revised 0.5 percent in August. Economists had expected production to rise by 0.2 percent.

A separate report from the New York Fed unexpectedly showed a continued decline in regional manufacturing activity in the month of October.

The New York Fed said its general business conditions index slid to a negative 6.8 in October from a negative 2.0 in September, with a negative reading indicating a contraction in activity.

The drop by the general business conditions index came as a surprise to economists, who had expected the index to rise to a positive 1.0.

Nonetheless, trading activity on the day was somewhat subdued ahead of the release of some closely watched economic data and earnings news in the coming days.

Sector News

Trucking stocks showed a significant move to the downside on the day, dragging the Dow Jones Trucking Index down by 1.4 percent. With the drop, the index fell to its lowest closing level in almost a month.

C.H. Robinson Worldwide (CHRW) and J.B. Hunt Transportation (JBHT) turned in two of the trucking sector's worst performances.

Electronic storage, brokerage and natural gas stocks also came under pressure, while gold stocks moved notably higher amid a modest increase by the price of the precious metal.

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 rose by 0.3 percent, while Hong Kong's Hang Seng Index dropped by 0.8 percent.

Meanwhile, the major European markets all moved to the downside on the day. While the U.K.'s FTSE 100 Index slumped by 0.9 percent, the German DAX Index slid by 0.7 percent and the French CAC 40 Index fell by 0.5 percent.

In the bond market, treasuries regained some ground following a recent downward trend. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.8 basis points to 1.766 percent.

Looking Ahead

Trading on Tuesday may be impacted by reaction to reports on consumer price inflation and homebuilder confidence.

On the earnings front, IBM (IBM) and Netflix (NFLX) are among the companies releasing their quarterly results after the close of today's trading.

Goldman Sachs (GS), Johnson & Johnson (JNJ), and UnitedHealth (UNH) are also due to report their results before the start of trading on Tuesday.