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Nasdaq Posting Notable Gain Amid Strength Among Tech Stocks


Stocks are turning in a relatively lackluster performance during trading on Monday, although strength in the tech sector has contributed to a notable advance by the tech-heavy Nasdaq.

Following the significant pullback seen last week, the Nasdaq is currently up 49.60 points or 0.6 percent at 8,196.09.

The S&P 500 is also up 5.65 points or 0.2 percent at 2,982.26, while the Dow has spent the day bouncing back and forth across the unchanged line as is currently down 5.45 points or less than a tenth of a percent at 27,148.75.

The choppy trading on Wall Street comes as traders seem reluctant to make significant moves ahead of the release of earnings news from a slew of big-name companies.

Amazon (AMZN), Coca-Cola (KO), AT&T (T), Boeing (BA), Caterpillar (CAT), Facebook (FB), Alphabet (GOOGL), Intel (INTC), McDonald's (MCD), and Twitter (TWTR) are just a few of the companies due to report their quarterly results this week.

According to FactSet data, 79 percent of S&P 500 companies have reported better than expected quarterly earnings so far this earnings season.

Traders are also sticking to the sidelines amid a quiet day on the U.S. economic front ahead of the release of reports on new and existing home sales, durable goods orders, and second quarter GDP in the coming days.

Most of the major sectors are showing only modest moves in mid-day trading, although considerable strength remains visible among oil service stocks. Reflecting the strength in the sector, the Philadelphia Oil Service Index has surged up by 2.4 percent.

Halliburton (HAL) has led the oil service sector higher, spiking by 7.3 percent after reporting better than expected second quarter earnings.

Semiconductor stocks also continue to see significant strength, with the Philadelphia Semiconductor Index jumping by 1.9 percent to a two-month intraday high.

Chip maker Micron Technology (MU) is posting a standout gain after Goldman Sachs upgraded its rating on the company's stock to Buy from Neutral.

Computer hardware and software stocks are also seeing notable strength on the day, while substantial weakness has emerged among tobacco stocks.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan's Nikkei 225 Index dipped by 0.2 percent, while Hong Kong's Hang Seng Index plunged by 1.4 percent.

Meanwhile, the major European markets moved to the upside on the day. While the U.K.'s FTSE 100 Index inched up by 0.1 percent, the German DAX Index and the French CAC 40 Index rose by 0.2 percent and 0.3 percent, respectively.

In the bond markets, treasuries are seeing modest strength after ending the previous session slightly lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.7 basis points at 2.031 percent.

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