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U.S. Stocks Close Mixed After Recovering From Initial Weakness

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Stocks recovered from an initial move to the downside but showed a lack of direction over the course of the trading session on Monday. The major averages eventually closed mixed, with the Dow inching up to a new record closing high.

While the Dow crept up 10.25 points or less than a tenth of a percent to 27,691.49, the Nasdaq edged down 11.04 points or 0.1 percent to 8,464.28 and the S&P 500 slipped 6.07 points or 0.2 percent to 3,087.01.

Profit taking contributed to the initial weakness on Wall Street, as some traders looked to cash in on last week's strong gains.

Uncertainty about a potential U.S.-China trade deal weighed on the markets along with worsening tensions in Hong Kong after the arrest of three pro-democracy lawmakers.

Nonetheless, selling pressure waned shortly after the start of trading, with the Veterans Day holiday keeping some traders on the sidelines.

The economic calendar was also quiet due to the holiday, although reports on consumer and producer prices, retail sales and industrial production may attract attention in the coming days.

Traders are also likely to keep an eye on President Donald Trump's speech at the Economic Club of New York on Tuesday as well as Federal Reserve Chairman Jerome Powell's testimony before the Congressional Joint Economic Committee on Wednesday.

The Dow benefited from a sharp jump by shares of Boeing (BA), with the aerospace giant surging up by 4.6 percent after revealing it expects to resume deliveries of its 737 Max planes as early as next month.

Most of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets.

Natural gas stocks showed a substantial move to the downside, however, with the NYSE Arca Natural Gas Index plunging by 3.2 percent.

The sell-off by natural gas stocks came amid a steep drop by the price of the commodity, as natural gas for December delivery tumbled $0.152 or 5.4 percent to $2.637 per million BTUs.

Biotechnology, steel and utilities stocks also saw some weakness on the day, while housing stocks moved higher over the course of the session.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan's Nikkei 225 Index fell by 0.3 percent, while Hong Kong's Hang Seng Index plunged by 2.6 percent.

Meanwhile, the major European markets turned in a mixed performance on the day. While the French CAC 40 Index inched up by 0.1 percent, the German DAX Index edged down by 0.2 percent and the U.K.'s FTSE 100 Index slid by 0.4 percent.

The bond markets were closed for the Veterans Day holiday. Treasuries showed a lack of direction over the course of the trading session last Friday before closing roughly flat.

Looking Ahead

The latest batch of earnings news may attract some attention on Tuesday amid another quiet day on the U.S. economic front.

CBS Corp. (CBS), D.R. Horton (DHI), Dean Foods (DF), and Tyson Foods (TSN) are among the companies due to report their quarterly results before the start of trading on Tuesday.

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