Stocks are modestly lower in early afternoon trading on Monday, swinging between gains and losses over the first half the session amid some clashing market indicators. The major averages are all currently in negative territory, extending their choppy movement following Friday's sharp losses.
Equities saw some upside earlier after the Institute for Supply Management - Chicago reported that activity in the Chicago-area manufacturing sector continued to expand in November, with the report showing an unexpected acceleration in the pace of growth.
Some relief for traders also came as the Central Bank of the United Arab Emirates said that it would extend additional funds for local and foreign banks to cope with the financial crisis resulting from the potential failure of Dubai World.
Meanwhile, initial reports from the National Retail Federation revealed that the average consumer spent less on Black Friday this year than last year, although the number of shoppers increased compared to last year.
The major averages have all seen some upside in recent dealing, recovering from their worst levels of the day, although they remain negative. The Dow is currently down 25.24 at 10,284.68, the Nasdaq is down 13.10 at 2,125.34 and the S&P 500 is down 2.62 at 1,088.87.
Sector News
Considerable weakness is visible among healthcare provider stocks, resulting in a 1.6 percent loss by the Morgan Stanley Healthcare Provider Index. With the retreat the index has dipped to its worst intraday level in just over two and a half months.
Tenet Healthcare (THC) is one of the leading decliners in the sector, sliding by 4.8 percent. The decline has the stock at its worst level in roughly two and a half months.
Tobacco and electronic storage stocks are also retreating, with the NYSE Arca Tobacco Index and the NYSE Arca Disk Drive Index down by 2 percent and 1.6 percent, respectively. The drop has pulled the indices down to multi-week intraday lows.
Despite the pullback now visible in the major averages, airline and banking stocks are holding onto the bulk of their earlier gains. The NYSE Arca Airline Index and the Kbw Bank Index are advancing by 1.7 percent and 1.3 percent, respectively.
Stocks In The News
Theravance Inc. (THRX) is pulling back after receiving a letter from the FDA requiring additional data and analysis from the firm before approving antibiotic telavancin for the treatment of nosocomial pneumonia. The stock is currently down by 3 percent after hitting an eight and a half month intraday low.
Resource Capital Corp. (RSO) is also moving lower after the firm announced it intends to offer $50 million shares of common stock, sparking some selling pressure amid concerns over share dilution. The stock is retreating by 6.1 percent, falling to its lowest intraday price in nearly one month's time.
On the other hand, Vistaprint (VPRT) is advancing after affirming its second quarter earnings and revenue range, which is in-line with Wall Street estimates. The stock has gained 6 percent, climbing back towards the all-time intraday high set earlier this month.
In Focus: ISM - Chicago Data
As mentioned above, the ISM - Chicago said that its index of activity in the manufacturing sector rose to 56.1 in November from 54.2 in October, with a reading above 50 indicating growth in the sector. The increase by the index surprised economists, who had expected the index to slip to 53.3.
Commenting on the data, Peter Boockvar, equity strategist for Miller Tabak, said, "Today's better number follows also an upside surprise in October, but the stock market didn't respond then as it waited for the national ISM report to reconcile the regional surveys."
"The Chicago PMI though does confirm that manufacturing will be a key part of the hoped for recovery as consumer spending still remains uncertain," Boockvar added.
Other Markets
In overseas trading, stocks markets across the Asia-Pacific region ended sharply higher on Monday, regaining some ground after Friday's pullback. Japan's benchmark Nikkei 225 Index advanced by 2.9 percent, while Hong Kong's Hang Seng Index rose by 3.3 percent.
Meanwhile, the major European markets ended the day notably lower, with the U.K.'s FTSE 100 Index, the French CAC 40 Index and the German DAX Index all closing down by 1.1 percent.
In the bond markets, treasuries continue to show a lack of conviction. Subsequently, the benchmark ten-year note is essentially unchanged, holding at 3.225 percent.
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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.