Stocks Close Mixed Following Lackluster Session - U.S. Commentary

(RTTNews) - Following the substantial upward move seen in the previous week, stocks turned in a lackluster performance during trading on Monday. Despite the choppy trading, the Dow still reached a new record closing high.

The major averages ended the day on opposite sides of the unchanged line. While the Dow crept up 21.03 points or 0.1 percent to 18,868.69, the Nasdaq fell 18.72 points or 0.4 percent to 5,218.40 and the S&P 500 edged down 0.25 points or less than a tenth of a percent to 2,164.20.

The choppy trading on Wall Street came as traders seemed reluctant to make more significant moves after the strong gains seen in reaction to President-elect Donald Trump's surprise victory.

A lack of major U.S. economic data also kept some traders on the sidelines ahead of the release of several key reports in the coming days.

Reports on retail sales, producer and consumer prices, industrial production and housing starts are all due to be released later this week.

On the earnings front, retail giants Wal-Mart (WMT), Home Depot (HD), Target (TGT), and Best Buy (BBY) are among the companies due to report their quarterly results this week.

Among individual stocks, shares of Harman International (HAR) moved sharply on the day after the automobile technology company agreed to be acquired by Samsung for $8 billion in cash.

Mentor Graphics (MENT) also posted a substantial gain after the company agreed to be acquired by Germany's Siemens for $4.5 billion in cash.

On the other hand, shares of Novartis (NVS) moved notably lower amid news the drug maker is considering the sale of its Alcon eye care products division

Sector News

Despite the lack of direction shown by the broader markets, financial stocks added to recent gains amid optimism about reduced regulation under Trump.

Reflecting the strength in the financial sector, the Dow Jones Banks Index surged up by 3.4 percent and the NYSE Arca Broker/Dealer Index jumped by 2.3 percent.

Steel stocks also saw a substantial move to the upside, continuing to benefit from optimism the industry will benefit from a Trump presidency. The NYSE Arca Steel Index shot up by 2.9 percent to a nearly two-year closing high.

Biotechnology, commercial real estate and transportation stocks also saw considerable strength, while significant weakness was visible among internet and software stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Monday. Japan's Nikkei 225 Index surged up by 1.7 percent, while Hong Kong's Hang Seng Index slumped by 1.4 percent.

Meanwhile, the major European markets all closed modestly higher on the day. While the French CAC 40 Index climbed by 0.4 percent, the U.K.'s FTSE 100 Index and the German DAX Index edged up by 0.3 percent and 0.2 percent, respectively.

In the bond market, treasuries showed a notable move to the downside, extending the sell-off seen in recent sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped by 10.5 basis points to 2.222 percent.

Looking Ahead

Trading on Tuesday may be impacted by reaction to a batch of economic data, including reports on retail sales, import and export prices and New York manufacturing.

Home improvement retailer Home Depot is also scheduled to release its quarterly results before the start of tomorrow's trading.