Major Averages Rebound After Moving Lower At The Open

(RTTNews) - After showing a notable decline at the open, stocks have shown a significant rebound over the course of early trading on Monday. The major averages have bounced well off their lows for the young session, with the Nasdaq climbing into positive territory.

The initial weakness on Wall Street was partly due to the release of a disappointing report from the New York Federal Reserve on regional manufacturing activity.

The New York Fed said its general business conditions index tumbled to a negative 14.9 in August from a positive 3.9 in July, with a negative reading indicating a contraction in manufacturing activity.

Selling pressure waned not long after the open, however, and stocks rebounded amid the release of a separate report from the National Association of Home Builders showing a modest uptick in homebuilder confidence.

The report said the NAHB/Wells Fargo Housing Market Index inched up to 61 in August from 60 in July, in line with economist estimates.

Most of the major sectors are currently showing only modest moves, although considerable strength has emerged among gold stocks. The NYSE Arca Gold Bugs Index has surged up by 2.8 percent amid an increase by the price of gold.

Airline stocks are also seeing some strength in early trading, while weakness remains visible among brokerage and oil service stocks.

Currently, the major averages are turning in a mixed performance. While the Nasdaq is up 3.54 points or 0.1 percent at 5,051.78, the Dow is down 18.00 points or 0.1 percent at 17,459.40 and the S&P 500 is down 1.50 points or 0.1 percent at 2,090.04.