WASHINGTON (dpa-AFX) - After moving sharply lower early in the session, stocks have regained ground over the course of the trading day on Monday. The major averages have climbed well off their early lows, with the Dow reaching positive territory.
Currently, the major averages are turning in a mixed performance. While the Dow is up 107.15 points or 0.3 percent at 41,424.58, the S&P 500 is down 10.61 points or 0.2 percent at 5,676.06 and the Nasdaq is down 46.55 points or 0.3 percent at 17,931.18.
The early pullback on Wall Street came as some traders look to cash in on the recent strength in the markets, which lifted the major averages to their best levels in a month.
The S&P 500 closed higher for the ninth consecutive session last Friday, marking its longest winning streak in over twenty years.
Renewed trade concerns also weighed on stocks after President Donald Trump announced plans to impose a 100 percent tariff on movies produced in foreign countries.
'The Movie Industry in America is DYING a very fast death,' Trump said in a post on Truth Social. 'Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated.'
'This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!' he added. 'WE WANT MOVIES MADE IN AMERICA, AGAIN!'
Trump also told reporters on Sunday that he has no plans to talk to his Chinese counterpart Xi Jinping this week, offsetting recent optimism about a potential U.S.-China trade deal.
However, early selling pressure waned following the release of a report from the Institute for Supply Management showing an unexpected increase by its reading on U.S. service sector activity in the month of April.
The ISM said its services PMI rose to 51.6 in April from 50.8 in March, with a reading above 50 indicating growth. Economists had expected the index to edge down to 50.6.
The subsequent recovery attempt also came after a report from Bloomberg said India has proposed zero tariffs on steel, auto components and pharmaceuticals up to a certain amount in its trade negotiations with the U.S.
Citing people familiar with the matter, Bloomberg said the offer was made by Indian trade officials visiting Washington late last month to expedite negotiations on a bilateral trade deal.
Sector News
Most of the major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.
Gold stocks continue to see substantial strength, however, with the NYSE Arca Gold Bugs Index surging by 2.7 percent amid a sharp increase by the price of the precious metal.
Significant strength also remains visible among airline stocks, as reflected by the 2.0 percent jump by the NYSE Arca Airline Index.
On the other hand, energy stocks continue to see considerable weakness amid a steep drop by the price of crude oil, dragging the Philadelphia Oil Service Index and the NYSE Arca Oil Index down by 1.4 percent and 1.2 percent, respectively.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance in light trading on Monday, as several major markets were closed for holidays. Australia's S&P/ASX 200 Index slumped by 1.0 percent, while India's Nifty 50 Index climbed by 0.5 percent.
The major European markets also ended the day mixed, with the U.K. market closed for a holiday. While the German DAX Index jumped by 1.1 percent, the French CAC 40 Index fell by 0.6 percent.
In the bond market, treasuries are extending the notable downward move seen over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.0 basis points at 4.369 percent.
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