Stocks have moved modestly lower in early trading on Monday, giving back some ground after trending higher in recent weeks. The major averages have dipped into negative territory, although selling pressure has remained relatively subdued.
The major averages are currently posting modest losses, near their lows for the young session. The Dow is down 59.71 points or 0.4 percent at 15,058.78, the Nasdaq is down 7.70 points or 0.2 percent at 3,428.88 and the S&P 500 is down 6.44 points or 0.4 percent at 1,627.26.
The early weakness on Wall Street is largely due to profit taking, with some traders cashing in on the recent strength in the markets.
Last week's gains lifted the Dow and the S&P 500 to new record closing highs, while the Nasdaq rose to another twelve-year high.
Nonetheless, a report from the Commerce Department showing an unexpected increase in April retail sales has helped to limit the downside for the markets.
The Commerce Department said retail sales inched up by 0.1 percent in April following a revised 0.5 percent decrease in March.
The modest increase in sales surprised economists, who had expected sales to dip by 0.3 percent compared to the 0.4 percent drop originally reported for the previous month.
Paul Dales, Senior U.S. Economist at Capital Economics, said, "Overall, it doesn't look as though January's payroll tax hike put much of a dent in consumption in either the first or second quarters."
"Most recently, the hit to after-tax incomes has been cushioned by the plunge in gasoline prices that has left households with more cash to spend on other items," he added.
Gold stocks are seeing significant weakness, however, with a decrease by the price of the precious metal weighing on the sector. With gold for June delivery sliding $4.50 to $1,432.10 an ounce, the NYSE Arca Gold Bugs Index is down by 2.2 percent.
Steel, chemical, and railroad stocks are also seeing notable weakness, while most of the major sectors are showing more modest moves to the downside.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index surged up by 1.2 percent, while Hong Kong's Hang Seng Index tumbled by 1.4 percent.
Meanwhile, the major European markets have moved to the downside on the day. The French CAC 40 Index has dipped by 0.3 percent, while the U.K.'s FTSE 100 Index and the German DAX Index are both down by 0.1 percent.
In the bond market, treasuries are moving moderately lower on the heels of the upbeat retail sales data. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.4 basis points at 1.924 percent.
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