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Stocks Moving Mostly Higher But Dow Bucking Uptrend - U.S. Commentary


Stocks have moved mostly higher in morning trading on Monday, rebounding following the pullback seen last week. The Nasdaq and the S&P 500 have climbed firmly into positive territory, although the Dow is bucking the uptrend.

The Dow has climbed well off its lows of the session but is currently down 19.81 points or 0.1 percent at 25,430.43. On the other hand, the Nasdaq is up 82.15 points or 1.1 percent at 7,490.29 and the S&P 500 is up 21.04 points or 0.8 percent at 2,764.11.

A steep drop by shares of Boeing (BA) is weighing on the Dow, as the aerospace giant is plunging by 8 percent in morning trading.

Boeing came under pressure following the crash of Ethiopian Airlines Flight 302, which is the second crash in five months involving the company's 737 Max 8 model.

Meanwhile, the broader markets are benefiting from the release of a report from the Commerce Department showing an unexpected uptick in U.S. retail sales in January.

The Commerce Department said retail sales rose by 0.2 percent in January after tumbling by a revised 1.6 percent in December.

Economists had expected retail sales to come in unchanged compared to the 1.2 percent slump originally reported for the previous month.

Excluding a steep drop in auto sales, retail sales climbed by 0.9 percent in January after plummeting by a revised 2.1 percent in December.

Ex-auto sales had been expected to increase by 0.3 percent compared to the 1.8 percent plunge originally reported for the previous month.

Oil service stocks have shown a significant move to the upside in morning trading, driving the Philadelphia Oil Service Index up by 1.5 percent. The index is bouncing off a two-month closing low.

An increase by the price of crude oil is contributing to the strength in the sector, with crude for April delivery climbing $0.57 to $56.63 a barrel.

Networking, semiconductor, and computer hardware stocks are also seeing considerable strength, contributing to the rally by the tech-heavy Nasdaq.

Chemical, housing, and steel stocks have also moved notably higher amid broad based buying interest on Wall Street.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index climbed by 0.5 percent, while Hong Kong's Hang Seng Index jumped by 1 percent.

The major European markets have also moved to the upside on the day. While the U.K.'s FTSE 100 Index has risen by 0.3 percent, the French CAC 40 Index and the German DAX Index are both up by 0.4 percent.

In the bond market, treasuries are seeing modest weakness after trending higher over the past few sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.4 basis points at 2.639 percent.

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