Stocks are showing a lack of direction in the middle of the afternoon on Monday, lingering near the unchanged mark. While early weakness was seen in reaction to news of a surprise rate hike by China over the weekend, the markets have recovered since then.
The major averages have moved roughly sideways in recent trading, stuck on opposite sides of the unchanged line. The Dow is currently down 14.45 points or 0.1 percent at 11,559.04, while the Nasdaq is up 3.47 points or 0.1 percent at 2,669.07 and the S&P 500 is up 1.07 points or 0.1 percent at 1,257.84.
Losses overseas in both European and Asian markets set the tone early on Monday after China raised its key lending and deposit rates by a quarter of a percentage point each on Saturday.
Reaction to the news was relatively muted, however, as trading activity remained subdued following the long weekend and amid poor weather in the New York area. In the U.S., the economic calendar is dry, contributing to the light volume along with lackadaisical attitude with the year coming to a close.
Despite some economic news due out later in the week, trading is likely to remain subdued as some traders remain away from their desks ahead of the New Year.
In corporate news, NGAS Resources (NGAS) is trading substantially higher after agreeing to be acquired by Magnum Hunter Resources (MHR) in an all stock deal. The deal values each NGAS share at $0.55, a 41 percent premium to its closing price on Friday.
Meanwhile, Randgold Resources (GOLD) is under pressure after its announcement that its fourth quarter performance may be negatively impacted by the continuing political impasse in Cote d'Ivoire on its Tongon mine and a below-target contribution from its Loulo complex.
Dow Components
A majority of the Dow's 30 stocks are on the downside, keeping the blue chip index just below the flat line.
Procter & Gamble (PG) and Alcoa (AA) are two of the leading percentage decliners in the Dow, falling by 1.2 percent and 1 percent, respectively. P&G is falling from the two-year closing high it set on Friday, while Alcoa is slipping from an eleven-month closing high.
Losses are also being shown by shares of Microsoft (MSFT), McDonald's (MCD) and Pfizer (PFE), but selling is more restrained.
On the other hand, Cisco (CSCO) is up by 2.4 percent and is on target for its best close in over a month.
Bank of America (BAC) is also notably higher, rising by 1.7 percent. Shares are bouncing back from Friday's weakness.
General Electric (GE), JP Morgan Chase (JPM) and Home Depot (HD) are also on the upside, helping to offset the weakness among the other Dow stocks.
Sector News
Resource stocks continue to show weakness in the afternoon, with oil service, gold and steel stocks posting notable losses. The Philadelphia Oil Service Index is down by 1 percent, the NYSE Arca Gold Bugs Index is down by 0.9 and the NYSE Arca Steel Index posting a loss of 0.8 percent.
On the upside, banking and commercial real estate stocks remain elevated, along with biotechnology and electronic storage stocks. The KBW Bank Index is up by 0.8 percent, while the Morgan Stanley REIT Index is up by 1 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Monday. Japan's benchmark Nikkei 225 Index rose by 0.8 percent, while China's Shanghai Composite Index fell by 1.9 percent after the interest rate hike.
Meanwhile, the major European markets saw sharp losses on the day. The French CAC 40 Index and the German DAX Index fell by 1 percent and 1.2 percent, respectively, while the U.K. market was closed.
In the bond markets, treasuries are on pace to end modestly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 3.360 percent, posting a loss of 3.3 basis points.
For comments and feedback contact: editorial@rttnews.com
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.