Major Averages Close Mixed After Lackluster Session - U.S. Commentary

(RTTNews) - Following the lackluster session seen last Friday, stocks continued to show a lack of direction during trading on Monday. The major averages spent the day bouncing back and forth across the unchanged line.

The major averages ended the day mixed. While the Dow edged down 5.27 points or less than a tenth of a percent to 21,808.40, the Nasdaq rose 17.37 points or 0.3 percent to 6,383.02 and the S&P 500 inched up 1.19 points or 0.1 percent to 2,444.24.

The choppy trading on Wall Street came as traders were looking ahead to the release of key economic data in the coming days.

The monthly jobs report is likely to be in focus, with the report expected to show an increase of 180,000 jobs in August.

Reports on consumer confidence, personal income and spending, pending home sales, and manufacturing activity may also attract attention.

Most of the major sectors showed only modest moves on the day, although considerable weakness was visible among energy stocks.

The weakness in the energy sector came amid a steep drop by the price of crude oil, with crude for October delivery tumbling $1.30 to $46.57 a barrel.

On the other hand, biotechnology stocks showed a strong move to the upside, driving the NYSE Arca Biotechnology Index up by 3 percent.

Kite Pharma (KITE) posted a standout gain after agreeing to be acquire by Gilead Sciences (GILD) for approximately $11.9 billion.

Significant strength was also visible among gold stocks, as reflected by the 4 percent jump by the NYSE Arca Gold Bugs Index. The strength in the sector came as gold for December delivery surged up $17.40 to $1,315.30 an ounce.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index closed just below the unchanged line, while Hong Kong's Hang Seng Index inched up by 0.1 percent.

Meanwhile, the major European markets all moved to the downside on the day. While the U.K.'s FTSE 100 Index edged down 0.1 percent, the German DAX Index and the French CAC 40 Index fell by 0.4 percent and 0.5 percent, respectively.

In the bond market, treasuries are turning in a lackluster performance amid the choppy trading on Wall Street. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 2.171 percent.

On Tuesday, the Conference Board is scheduled to release its report on consumer confidence in the month of August.