Stocks finished on opposite sides of the unchanged mark on Monday, as traders largely shrugged off the day's lackluster economic data and weighed the reform proposals brought forth by Senator Chris Dodd. The major averages all closed well off of their lows of the session following a late day rally, with the Dow and the S&P 500 ending in positive territory.
This afternoon, Senator Dodd unveiled his financial regulatory reform bill, which called for a consumer protection agency to be established within the Federal Reserve with the ability to write and enforce consumer protection rules.
Particularly, the agency would target banks with assets of over $10 billion, all mortgage-related businesses and large non-bank financial firms to ensure consumer protections are enforced.
The bill also calls for the Fed to supervise financial companies that have over $50 billion in assets while also handling some consumer protection measures. The legislation would also require hedge funds managing assets over $100 million to register with the SEC.
On the economic front today, the Federal Reserve said that industrial production edged up by 0.1 percent in February following an unrevised 0.9 percent increase in January. The modest increase came as a slight surprise to economists, who had expected production to be unchanged.
Additionally, the Fed said that capacity utilization rose to 72.7 percent in February from a revised 72.5 percent in the previous month. Economists had expected capacity utilization to slip to 72.5 percent compared to the 72.6 percent originally reported for January.
Separately, the New York Fed reported that its index of regional manufacturing activity edged down to 22.9 in March from 24.9 in February, but a positive reading still indicates growth in the sector. Economists had expected the index to slip to a reading of 22.0.
Also today, the National Association of Home Builders said that homebuilder confidence unexpectedly deteriorated in the month of March.
In corporate news, Boston Scientific Corp. (BSX) fell after the firm halted sales of its implantable cardioverter defibrillators due to a paperwork error when filing with the FDA.
Clothing company Phillips-Van Heusen Corp. (PVH) announced that it has agreed to acquire apparel maker Tommy Hilfiger from funds affiliated with British private equity firm Apax Partners LLP for about $3.0 billion.
The major averages all saw notable upside in late-session dealing but still finished mixed on the day. The Dow advanced by 17.46 points or 0.2 percent to end at 10,642.15 and the S&P 500 inched up by 0.52 points or 0.1 percent to 1,150.51, while the Nasdaq slid 5.45 points or 0.2 percent to close at 2,362.21.
Sector News
Semiconductor stocks were some of the day's worst performers, with the Philadelphia Semiconductor Index sliding by 1.4 percent. The decline dragged the index further off of the two-month closing high set last week.
Natural gas stocks also closed markedly lower on the day, as reflected by the 1.3 percent retreat by the NYSE Arca Natural Gas Index. With the pullback, the index also continued to move away from last week's two-month closing high.
Electronic storage, oil service and steel stocks also fell, while biotechnology stocks saw solid gains. The NYSE Arca Biotechnology Index rose 0.9 percent, closing at a fresh historic high.
Healthcare provider, tobacco and consumer-related stocks also rose, although more modestly, helping to offset some of the weakness in other market segments.
Dow Components
Shares of Wal-Mart (WMT) led the Dow on a percentage basis, rising by 2.8 percent. The stock closed at a more than one-year high after Citigroup upgraded its rating on shares of the retail giant from Hold to Buy.
Merck (MRK) also posted a strong gain, rising by 1.6 percent. With the advance, shares of the drug-maker ended the session at their highest closing price in just over a month.
General Electric (GE), Pfizer (PFE) and Cisco (CSCO) also rose, while Caterpillar (CAT) was the weakest performer among the blue chips, sliding by 1.5 percent. With the drop, the stock pulled back off of the nearly two-month closing high set in the previous session.
Travelers (TRV), Exxon Mobil (XOM) and Alcoa (AA) also saw selling pressure, limiting the advance by the Dow.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region closed mostly lower on Monday. Hong Kong's Hang Seng Index edged down by 0.6 percent, while Japan's benchmark Nikkei 225 Index closed nearly flat.
The major European markets also moved moderately lower. The U.K.'s FTSE 100 Index and the German DAX Index fell by 0.6 percent and 0.7 percent, respectively, while French CAC 40 Index closed down by 0.9 percent.
In the bond markets, bond prices ended little changed, recovering from early weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, closed at 3.704 percent, falling by less than a basis point.
Looking Ahead
Tuesday, the Federal Open Market Committee's interest rate announcement is likely to garner attention, more so for its language than its result, as the Fed is widely expected to keep rates unchanged.
Data on housing starts and import and export prices may provide other undercurrents for the day's trading.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.