Stocks are turning in a lackluster performance in early trading on Monday as traders seem reluctant to make any significant moves. The major averages are lingering near the unchanged line after ending Friday's trading at three-month closing highs.
The choppy trading on Wall Street comes as many traders are staying on the sidelines amid uncertainty about the near-term outlook for the markets. A light day on the U.S. economic calendar is also keeping trading activity relatively subdued.
Benefiting from optimism about the possibility of further monetary stimulus, stocks have trended higher over the course of the past two months. However, buying interest has waned over the past few sessions, and traders may need to see an official stimulus announcement before making any significant moves.
Most of the major sectors are showing only modest moves, contributing to the lackluster performance being shown by the broader markets.
Nonetheless, notable strength has emerged among gold stocks, as reflected by the 1 percent gain being posted by the NYSE Arca Gold Bugs Index. The strength among gold stocks comes amid a modest increase by the price of the precious metal.
While modest strength is also visible among airline stocks, heath insurance and biotechnology stocks have moved to the downside in early trading.
The major averages are currently turning in a mixed performance, with the Nasdaq up 0.49 points or less than a tenth of a percent at 3,021.35, while the Dow is down 15.26 points or 0.1 percent at 13,192.69 and the S&P 500 is down 1.24 points or 0.1 percent at 1,404.63.
by RTT Staff Writer
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