Stocks Give Back Ground But Remain Mostly Positive - U.S. Commentary

(RTTNews) - After moving notably higher at the open, stocks have given back some ground over the course of the trading session on Monday. The major averages have pulled back well off their best levels of the day, with the Dow briefly turning negative.

Currently, the major averages are posting modest gains. The Dow is up 17.47 points or 0.1 percent at 17,146.02, the Nasdaq is up 20.06 points or 0.4 percent at 4,943.14 and the S&P 500 is up 3.92 points or 0.2 percent at 2,009.47.

The initial strength on Wall Street was partly due to bargain hunting after the steep drop seen late last week, which pulled the major averages down to their lowest closing levels in two months.

Buying interest waned not long after the open, however, with some traders away from their desks ahead of Christmas.

A lack of major U.S. economic data also made traders reluctant to make significant moves, although several key reports are due to be released in the coming days.

Traders are likely to keep an eye on reports on new and existing home sales, durable goods orders, and personal income and spending.

The subsequent pullback by stocks came amid a continued decrease by the price of crude oil, as crude for January delivery is down $0.37 at $34.36 a barrel.

The price of oil fell to a nearly seven-year low of $33.98 a barrel earlier in the day amid ongoing concerns about a global supply glut.

Among individual stocks, shares of Ericsson (ERIC) have moved sharply higher after the telecom company settled patent litigation with Apple (AAPL) by signing a licensing agreement.

Biotechnology company Halozyme Therapeutics (HALO) is also posting a strong gain after announcing a global collaboration and license agreement with Eli Lilly (LLY).

Meanwhile, shares of Disney (DIS) have moved to the downside even though the media giant's new Stars Wars movie set records at the box office over the weekend.

Sector News

Despite the pullback by the broader markets, significant strength remains visible among gold stocks. The NYSE Arca Gold Bugs Index is up by 3.2 percent, climbing further off the nearly one-month closing low set last Thursday.

The gains by gold stocks come amid an increase by the price of the precious metal, with gold for February delivery climbing $13.40 to $1,078.40 an ounce.

Airline stocks are also holding on to strong gains, resulting in a 2.1 percent advance by the NYSE Arca Airline Index. China Southern Airlines (ZNH) and Copa Holdings (CPA) are posting standout gains.

Telecom and computer hardware stocks also continue to see notable strength, while energy stocks have moved to the downside along with the price of crude oil.

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 fell by 0.4 percent, while Hong Kong's Hang Seng Index edged up by 0.2 percent.

Meanwhile, the major European markets all turned lower over the course of the session. While the U.K.'s FTSE 100 Index dipped by 0.3 percent, the German DAX Index slumped by 1 percent and the French CAC 40 Index tumbled by 1.3 percent.

In the bond market, treasuries have moved modestly higher on the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.6 basis points at 2.183 percent.