Stocks May Give Back Ground After Last Week's Gains - U.S. Commentary

(RTTNews) - After turning in a strong performance last week, stocks may give back some ground in early trading on Monday. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 17 points.

Profit taking may contribute to some early weakness on Wall Street after last week's gains lifted the Dow and the S&P 500 to new record closing highs. The tech-heavy Nasdaq also reached its best levels in over two months.

While recent economic data suggests that the U.S. economy has recovered from the winter doldrums, there is some uncertainty about whether the pace of growth supports further upside for the markets.

Nonetheless, trading activity may be somewhat subdued amid the lack of major U.S. economic due to be released on the day.

Some key data is scheduled to be released later in the week, including reports on retail sales, producer prices, and consumer sentiment.

Upbeat economic data from Japan and China may also help to limit any early downside among U.S. stocks.

A report from Japan's Cabinet Office showed that the nation's GDP rose 1.6 percent in the first quarter, faster than the 1.5 percent growth estimated initially.

Additionally, China's General Administration of Customs said the Chinese trade surplus widened to $35.9 billion in May amid a 7 percent year-over-year jump in exports.

Among individual stocks, shares of Apple (AAPL) may be in focus on the day as the tech giant experiences its first day of trading following its 7-for-1 stock split.

Meat producer Tyson Foods (TSN) could also see increased activity amid reports that it has won the battle to acquire Hillshire Brands (HSH) for about $63 per share in cash.

Meanwhile, shares of Hittite Microwave (HITT) are moving sharply higher in pre-market trading after the chipmaker agreed to be acquired by Analog Devices (ADI) for $78 per share in cash.

With traders reacting positively to the monthly U.S. jobs report, stocks moved mostly higher over the course of the trading day on Friday. The gains on the day extended the upward move seen on Thursday, lifting the Dow and the S&P 500 to new record closing highs.

The major averages finished the session firmly in positive territory, at or near their best level of the day. The Dow rose 88.17 points or 0.5 percent to 16,924.28, the Nasdaq advanced 25.17 point or 0.6 percent to 4,321.40 and the S&P 500 climbed 8.98 points or 0.5 percent to 1,949.44.

For the week, the major averages all posted notable gains. The Dow and the S&P 500 jumped by 1.2 percent and 1.3 percent, respectively, while the Nasdaq surged up by 1.9 percent.