Stocks are posting moderate losses in early afternoon trading on Monday, as the lack of substantive news on the overall direction of the economy has traders continuing to reduce their exposure to risk-laden assets. The major averages have seen little change since hitting fresh session lows in late-morning trading.
The Dow is currently down 65.20 points or 0.6 percent at 10,085.45, the Nasdaq is down 15.73 points or 0.7 percent at 2,137.90 and the S&P 500 is down 7.17 points or 0.7 percent at 1,057.42.
On the economic front today, the Commerce Department released a report showing that personal spending increased by 0.4 percent in July, just above economist expectations for an increase of 0.3 percent. Personal income rose by 0.2 percent in July, in-line with estimates.
In economic news, M&A has seen another flurry of activity to kick off the week, with Intel (INTC) announcing plans to buy Infineon Technologies' wireless chip unit for about $1.4 billion in cash. The move comes after Intel recently negotiated an agreement to buy security software maker McAfee (MFE).
Diversified technology company 3M Co. (MMM) also entered an agreement to acquire biometrics specialist Cogent, Inc. (COGT) for $10.50 per share, a deal worth $943 million.
Meanwhile, biotechnology giant Genzyme (GENZ) rejected Sanofi-Aventis' (SNY) $18.5 billion bid, claiming that the tender dramatically undervalues the firm.
In other M&A news, electronic storage firm 3PAR Inc. (PAR) said that Hewlett-Packard's (HPQ) $2 billion or $30 per share offer was a "superior proposal." Dell Inc (DELL) has three days to counter HP's latest proposal.
Overseas, the Bank of Japan announced an extension of its monetary easing policy, looking to prop up the sluggish economic recovery and fight the recent surge by the yen, which has been detrimental to its exports.
Despite the news, the dollar has slipped back below 85 yen after setting a daily high of 85.89 yen amid knee-jerk reaction to the news. Nonetheless, the dollar remains off of a fifteen-year low of 83.63 yen set earlier this month.
Sector News
Semiconductor stocks are posting steep losses in early afternoon trading, pulling the Philadelphia Semiconductor Index down by 2 percent. With the loss, the index has pulled back near the more than six-month closing low it set last Thursday.
Within the sector, Texas Instruments (TXN) is down by 3.4 percent and on pace for a two-month closing low. The loss by Texas Instruments comes after Susquehanna Financial downgraded its rating on the company's stock to Neutral from Buy.
Banking stocks are also markedly lower, with the Kbw Bank Index posting a 1.4 percent loss. The decline is dragging the index back down towards Thursday's eight-month closing low, offsetting a part of Friday's strong gain.
Trucking, steel, health insurance and defense stocks are also down by sizable margins, while some strength has emerged among electronic storage stocks. The NYSE Arca Disk Drive Index is up by 1.1 percent, moving further off of last week's one-year closing low.
Stocks In The News
Digital media firm DG FastChannel (DGIT) is sharply lower after issuing projections for the remainder of the year that were below analyst expectations. The stock is down by 32 percent and on target for a seventeen-month closing low.
Meanwhile, Fossil Inc. (FOSL) is notably higher after the firm announced a share repurchase plan of up to $750 million. Shares are currently up by 4.6 percent and on pace for a fresh all-time closing high.
Other Markets
Overseas, stock markets in the Asia-Pacific region ended on the upside Monday. Japan's benchmark Nikkei 225 Index gained 1.8 percent, while Hong Kong's Hang Seng Index advanced by 0.7 percent.
Meanwhile, the major European markets saw moderate losses. The French CAC 40 Index and the German DAX fell by 0.6 percent and 0.7 percent, respectively, while the U.K. market was closed on the day.
In the bond markets, treasuries remain notably higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 2.545 percent, posting a loss of 10.7 basis points.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.