Major Averages Turning In Another Mixed Performance - US Commentary

WASHINGTON (Alliance News) - Mirroring the performance seen in the previous session, stocks ...

Alliance News 13 March, 2018 | 3:55PM
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WASHINGTON (Alliance News) - Mirroring the performance seen in the previous session, stocks have turned mixed over the course of the trading session on Monday after failing to sustain an initial move to the upside.

Currently, the Dow is up 18.84 points or 0.1% at 25,197.45, while the Nasdaq is down 24.55 points or 0.3% at 7,563.78 and the S&P 500 is down 1.15 points or less than a tenth of a % at 2,781.87.

The initial strength on Wall Street came following the release of a Labor Department report showing a modest increase in consumer prices in the month of February.

The Labor Department said its consumer price index rose by 0.2% in February after climbing by 0.5% in January. Economists had expected consumer prices to rise by 0.2%.

Core consumer prices, which exclude food and energy prices, also edged up by 0.2% in February following a 0.3% increase in January. The uptick in core prices also matched expectations.

Traders are also digesting news that President Donald Trump plans to replace Secretary of State Rex Tillerson with CIA Director Mike Pompeo.

Most of the major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.

Telecom stocks are seeing considerable weakness, however, with the NYSE Arca Telecom Index slumping by 1.9%.

Within the telecom sector, Qualcomm (QCOM) is posting a notable loss after Trump blocked Broadcom's (AVGO) takeover of the company due to national security concerns.

Banking and oil service stocks have also moved to the downside, while strength is visible among transportation and housing stocks.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index advanced by 0.7%, while China's Shanghai Composite Index fell by 0.5%.

Meanwhile, the major European markets have moved to the downside on the day. While the German DAX Index has slumped by 1.1%, the UK's FTSE 100 Index is down by 0.8% and the French CAC 40 Index is down by 0.4%.

In the bond market, treasuries are seeing modest strength but have pulled back off their highs of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.3 basis points at 2.857%.

Copyright RTT News/dpa-AFX

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