Dow Seeking To Snap Losing Streak But Nasdaq Turns Lower
After moving to the upside at the start of trading on Monday, the major U.S. stock indexes have turned mixed over the course of the morning. While the Dow remains firmly positive, the tech-heavy Nasdaq has pulled back into negative territory.
Currently, the major averages remain on opposite sides of the unchanged line. The Nasdaq is down 66.03 points or 0.4 percent at 15,049.46, but the Dow is up 222.58 points or 0.6 percent at 34,830.30 and the S&P 500 has pulled back off its best levels but is up 3.07 points or 0.1 percent at 4,461.65.
The initial strength on Wall Street came as traders went bargain hunting after the Dow and the S&P 500 closed lower for five consecutive sessions.
The Dow ended last Friday’s trading at its lowest closing level in well over a month, down 2.9 percent from the record closing high set in mid-August.
However, the looming Federal Reserve meeting may be making traders reluctant to make significant moves, with the central bank potentially providing an update on the outlook for its asset purchase program.
The Fed’s two-day monetary policy meeting is scheduled for next Tuesday and Wednesday, but recent signs of slowing economic momentum could lead the central bank to hold off on discussing tapering.
A lack of major U.S. economic could also be keeping traders on the sidelines ahead of the release of reports on consumer prices, industrial production and retail sales in the coming days.
Nonetheless, energy stocks are seeing substantial strength on the day, benefiting from an increase by the price of crude oil. Crude for October delivery is climbing $0.73 to $70.45 a barrel.
Reflecting the strength in the energy sector, the Philadelphia Oil Service Index is up by 4.4 percent, the NYSE Arca Oil Index is up by 3.5 percent and the NYSE Arca Natural Gas Index is up by 2.8 percent.
Considerable strength has also emerged among gold stocks, as reflected by the 1.7 percent gain being posted by the NYSE Arca Gold Bugs Index.
The strength in the gold sector comes amid an increase by the price of the precious metal, with gold for December delivery rising $7.50 to $1,799.60 an ounce.
Banking, telecom and airline stocks are also seeing notable strength on the day, while tobacco stocks are extending a recent sell-off.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index edged up by 0.2 percent, while China’s Shanghai Composite Index rose by 0.3 percent.
European stocks have pulled back off their best levels but are also seeing strength on the day. While the French CAC 40 Index is up by 0.2 percent, the U.K.’s FTSE 100 Index and the German DAX Index are both up by 0.6 percent.
In the bond market, treasuries are regaining ground after coming under pressure in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2 basis points at 1.321 percent.
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