WASHINGTON (dpa-AFX) - Extending the lackluster performance seen over the two previous sessions, stocks showed a lack of direction during trading on Monday. The major averages bounced back and forth across the unchanged line before eventually closing modestly higher.
Despite the choppy trading, the Nasdaq and the S&P 500 reached new record closing highs. The Nasdaq climbed 59.40 points or 0.4 percent to 17,192.53, the S&P 500 rose 13.80 points or 0.3 percent to 5,360.79 and the Dow edged up 69.05 points or 0.2 percent to 38868.04.
Traders seemed reluctant to make more significant moves ahead of several key events later this week, including the Federal Reserve's monetary policy meeting.
The Fed is due to announce its latest monetary policy decision on Wednesday, when the central bank is widely expected to leave interest rates unchanged.
Since the decision is largely seen as a foregone conclusion, traders are likely to pay closer attention to Fed officials' latest projections for the economy and rates.
Ahead of the Fed announcement, the Labor Department is scheduled to release its report on consumer price inflation in the month of May.
Economists currently expect consumer prices to inch up by 0.1 percent in May after climbing by 0.3 percent in April, while core consumer prices, which exclude food and energy prices, are expected to increase by 0.3 percent for the second straight month.
The annual rate of growth by consumer prices is expected to come in unchanged at 3.4 percent, but the annual rate of core consumer price growth is expected to slow to 3.5 percent in May from 3.6 percent in April.
Reports on producer prices, import and export prices and consumer sentiment and inflation expectations may also attract attention later in the week.
Sector News
Oil service stocks showed a substantial move to the upside on the day, driving the Philadelphia Oil Service Index up by 2.9 percent. The rally by oil service stocks came amid a notable increase by the price of crude oil.
An increase by the price of gold also contributed to considerable strength among gold stocks, as reflected by the 1.6 percent gain posted by the NYSE Arca Gold Bugs Index.
Semiconductor stocks also turned in a strong performance, resulting in a 1.4 percent advance by the Philadelphia Semiconductor Index.
Computer hardware, natural gas and retail stocks also saw some strength on the day, while telecom stocks moved notably lower, adding to the steep losses posted last Friday.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Monday, with several markets closed for holidays. Japan's Nikkei 225 Index advanced by 0.9 percent, while South Korea's Kospi slid by 0.8 percent.
Meanwhile, the major European markets all moved to the downside on the day. While the French CAC 40 Index tumbled by 1.3 percent, the German DAX Index dipped by 0.3 percent and the U.K.'s FTSE 100 Index edged down by 0.2 percent.
In the bond market, treasuries saw continued weakness following the sell-off seen last Friday. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.9 basis points to 4.469 percent.
Looking Ahead
A lack of major U.S. economic data may lead to another light trading day on Tuesday ahead of the key events later in the week.
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