News Column

Major Averages Lingering Near The Unchanged Line In Early Trading

June 23, 2014

WASHINGTON (Alliance News) - With traders seemingly reluctant to make any significant moves, stocks have shown a lack of direction in early trading on Monday. The major averages have been bouncing back and forth across the unchanged line after moving notably higher last week.

The choppy trading on Wall Street partly reflects uncertainty about the near-term outlook for the markets after last week's gains lifted the Dow and the S&P 500 to record closing highs. The tech-heavy Nasdaq also reached its best closing level since 2000.

Meanwhile, traders have largely shrugged off the release of a report from the National Association of Realtors showing a bigger than expected increase in existing home sales in the month of May.

NAR said existing home sales jumped 4.9% to a seasonally adjusted annual rate of 4.89 million in May from an upwardly revised 4.66 million in April. Economists had expected existing home sales to climb to an annual rate of 4.75 million.

Most of the major sectors are showing only modest moves in early trading, contributing to the lackluster performance by the broader markets.

Gold stocks are seeing considerable strength, however, with the NYSE Arca Gold Bugs up by 1.3%. The strength in the sector comes despite a modest decrease by the price of gold.

Steel and housing stocks have also moved to the upside, while weakness has emerged among airline and tobacco stocks.

Currently, the major averages are posting slim losses on the day. The Dow is down 25.31 points or 0.2% at 16,921.77, the Nasdaq is down 2.40 points or 0.1% at 4,365.64 and the S&P 500 is down 0.25 points or less than a tenth of a % at 1,962.62.

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Source: Alliance News

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