Stocks Remain Mostly Negative In Mid-Day Trading - U.S. Commentary

(RTTNews) - After coming under pressure in early trading, stocks remain mostly negative in mid-day trading on Monday. The losses on the day have partly offset the strong upward move that was seen in the previous week.

In recent trading, the major averages have climbed off their worst levels of the day, but they remain firmly in the red. The Dow is down 82.28 points or 0.5 percent at 17,469.89, the Nasdaq is down 31.68 points or 0.6 percent at 5,016.81 and the S&P 500 is down 11.63 points or 0.6 percent at 2,049.36.

Profit taking has contributed to the weakness on Wall Street, as traders cash in on the strong gains posted last week.

The pullback by stocks also comes amid a notable decrease by the price of crude oil, which is retreating after last week's rebound.

Crude oil for February delivery is tumbling $1.24 to $35.86 a barrel after jumping $2.04 or 5.7 percent to $38.10 a barrel in the previous week.

Trading activity has remained relatively subdued, however, with some traders still away from their desks following the Christmas holiday.

The upcoming week will also be holiday-shortened due to the New Year's Day holiday, which will keep the markets closed on Friday.

The economic calendar for the week is relatively light, although traders are likely to keep an eye on reports on consumer confidence, pending home sales, and Chicago-area business activity.

Sector News

Gold stocks continue to see substantial weakness in mid-day trading, resulting in a 3.5 percent drop by the NYSE Arca Gold Bugs Index. The loss by the index comes after it showed a strong upward move last week.

The weakness among gold stocks comes amid a decrease by the price of the precious metal, with gold for February delivery is sliding $6.80 to $1,069.10 an ounce.

Significant weakness also remains visible among energy stocks, which are moving lower along with the price of crude oil.

Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index is down by 2.4 percent, the NYSE Arca Natural Gas Index is down by 2.2 percent and the NYSE Arca Oil & Gas Index is down by 1.9 percent.

Steel, airline, electronic storage, and semiconductor stocks are also seeing considerable weakness, moving lower along with most of the other major sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index climbed by 0.6 percent, while Hong Kong's Hang Seng Index slumped by 1 percent.

Meanwhile, the major European markets moved to the downside on the day, with the U.K. markets closed for a holiday. The German DAX Index fell by 0.7 percent, while the French CAC 40 Index tumbled by 1 percent.

In the bond market, treasuries have moved moderately higher amid the weakness on Wall Street. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.5 basis points at 2.218 percent.