Stocks Remain Mixed In Mid-Day Trading - U.S. Commentary

(RTTNews) - Stocks continue to turn in a lackluster performance in mid-day trading on Monday after showing a lack of direction early in the session. The Dow reached a new record intraday high in early trading but has pulled back near the unchanged line since then.

Currently, the major averages are turning in a mixed performance. While the Dow is up 19.25 points or 0.1 percent at 18,866.91, the Nasdaq is down 19.40 points or 0.4 percent at 5,217.71 and the S&P 500 is down 3.26 points or 0.2 percent at 2,161.19.

The choppy trading on Wall Street comes as traders seem reluctant to make more significant moves after the strong gains seen in reaction to President-elect Donald Trump's surprise victory.

A lack of major U.S. economic data may also be keeping some traders on the sidelines ahead of the release of several key reports in the coming days.

Reports on retail sales, producer and consumer prices, industrial production and housing starts are all due to be released later this week.

On the earnings front, retail giants Wal-Mart (WMT), Home Depot (HD), Target (TGT), and Best Buy (BBY) are among the companies due to report their quarterly results this week.

Among individual stocks, shares of Harman International (HAR) have moved sharply on the day after the automobile technology company agreed to be acquired by Samsung for $8 billion in cash.

Mentor Graphics (MENT) is also posting a substantial gain after the company agreed to be acquired by Germany's Siemens for $4.5 billion in cash.

On the other hand, Ultragenyx Pharmaceutical (RARE) has come under pressure after the company withdrew its conditional Marketing Authorization Application for Aceneuramic Acid Prolonged Release for the treatment of adult patients with GNE Myopathy.

Sector News

Despite the lack of direction being shown by the broader markets, financial stocks are adding to recent gains amid optimism about reduced regulation under Trump.

Reflecting the strength in the financial sector, the Dow Jones Banks Index is up by 3.2 percent and the NYSE Arca Broker/Dealer Index is up by 2.7 percent.

Transportation stocks are also extending a recent upward move, driving the Dow Jones Transportation Average up by 1.9 percent. With the gain, the average has reached its best intraday level in well over a year.

Steel, gold, and networking stocks are also seeing considerable strength, while significant weakness is visible among internet and software stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Monday. Japan's Nikkei 225 Index surged up by 1.7 percent, while Hong Kong's Hang Seng Index slumped by 1.4 percent.

Meanwhile, the major European markets all closed modestly higher on the day. While the French CAC 40 Index climbed by 0.4 percent, the U.K.'s FTSE 100 Index and the German DAX Index edged up by 0.3 percent and 0.2 percent, respectively.

In the bond market, treasuries have climbed well off their worst levels but continue to see weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 9.1 basis points at 2.208 percent.