After showing a strong upward move last week, stocks may give back some ground in early trading on Monday. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 23 points.
Profit taking is likely to contribute to any early weakness on Wall Street, with some traders looking to cash in on the recent strength in the markets.
Last week's gains extended a recent upward trend by the markets, with the Dow and the S&P 500 reaching new record closing highs last Friday. The Nasdaq also set a new twelve-year high.
Traders have recently shown a reluctant to sell stocks, however, leading to relatively brief pullbacks by the markets.
A lack of major U.S. economic data may also keep some traders on the sidelines, looking ahead to the release of key reports on new and existing home sales, weekly jobless claims, and durable goods orders.
Comments from Federal Reserve Chairman Ben Bernanke are also likely to be in focus later in the week, with the Fed chief due to testify before the Joint Economic Committee of Congress on Wednesday.
Among individual stocks, shares of Yahoo (YHOO) may attract attention after the online media giant announced an agreement to acquire popular blogging service Tumblr for $1.1 billion, mostly in cash. Yahoo said Tumblr will be independently operated as a separate business.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.