Stocks Turning In Lackluster Performance In Early Trading - U.S. Commentary

(RTTNews) - After initially moving to the downside, stocks have climbed back near the unchanged line in early trading on Monday. The choppy trading comes after the major averages turned in a mixed performance in the previous week.

Currently, the major averages are on opposite sides of the unchanged line. While the Nasdaq is down 5.60 points or 0.1 percent at 4,888.95, the Dow is up 18.32 points or 0.1 percent at 17,883.66 and the S&P 500 is up 0.31 points or less than a tenth of a percent at 2,096.38.

The initial weakness on Wall Street came as traders reacted to the mass shooting in a nightclub in Orlando over the weekend, which left 50 people dead.

The attack has raised some concerns about the economy amid worries that Americans may be more reluctant to enjoy the nightlife.

Selling pressure waned not long after the open, however, with traders looking ahead to the Federal Reserve's monetary policy announcement on Wednesday.

The Fed is widely expected to leave interest rates unchanged, but traders are likely to pay close attention to the accompanying statement.

While the Fed announcement will be the main focus this week, traders will also be presented with a slew of U.S. economic data.

The reports on retail sales, industrial production, housing starts and producer and consumer price inflation could impact the outlook for future Fed decisions.

Most of the major sectors are currently showing only modest moves, although significant strength is visible among internet stocks. Reflecting the strength in the sector, the Dow Jones Internet Index has surged up by 1.8 percent.

LinkedIn (LNKD) is leading the sector higher, surging up 47.2 percent after the company agreed to be acquired by Microsoft (MSFT) in an all-cash transaction valued at $26.2 billion.

On the other hand, airline stocks have come under pressure amid concerns the attack in Orlando could lead to reduced travel. The NYSE Arca Airline Index is down by 2.1 percent, pulling back further off the one-month closing high set last Thursday.

In overseas trading, stock markets across the Asia-Pacific region moved sharply lower during trading on Monday. Japan's Nikkei 225 Index plunged by 3.5 percent, while Hong Kong's Hang Seng Index tumbled by 2.5 percent.

The major European markets have also come under pressure on the day. While the U.K.'s FTSE 100 Index has fallen by 0.8 percent, the German DAX Index and the French CAC 40 Index are down by 1 percent and 1.1 percent, respectively.

In the bond market, treasuries are turning in a lackluster performance after moving notably higher in recent sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 1.634 percent.