WASHINGTON (dpa-AFX) - Following the strong upward move seen in the previous week, stocks showed a lack of direction over the course of the trading session on Monday. The major averages spent the day bouncing back and forth across the unchanged line.
The major averages eventually ended the day in negative territory. While the slid 200.52 points or 0.5 percent to 43,975.09, the Nasdaq fell 64.62 points or 0.3 percent to 21,385.40 and the S&P 500 dipped 16.00 points or 0.3 percent to 6,373.45.
The choppy trading on Wall Street came as traders seemed reluctant to make significant moves ahead of the release of several closely watched economic reports in the coming days.
The Labor Department's report on consumer price inflation in the month of July is likely to be in focus on Tuesday, as the data could impact the outlook for interest rates.
Economists currently expect consumer prices to rise by 0.2 percent in July after climbing by 0.3 percent in June, while the annual rate of growth is expected to inch up to 2.8 percent from 2.7 percent.
Core consumer prices, which exclude food and energy prices, are expected to increase by 0.3 percent in July after rising by 0.2 percent in June. The annual rate of growth is expected to tick up to 3.0 percent from 2.9 percent.
Ahead of the release of the data, CME Group's FedWatch Tool is indicating an 86.5 percent chance the Federal Reserve will lower interest rates by a quarter point next month.
Reports on producer price inflation, retail sales and industrial production are also likely to attract attention in the coming days.
Sector News
Reflecting the lackluster performance by the broader markets, most of the major sectors ended the day showing only modest moves.
Oil service stocks showed a significant move to the downside, however, with the Philadelphia Oil Service Index slumped 2.1 percent despite a modest increase by the price of crude oil.
Oil producer and transportation stocks also saw notable weakness on the day, contributing to the moderately lower close by the broader markets.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday, with Japanese markets closed for a holiday. China's Shanghai Composite Index rose by 0.3 percent, while Hong Kong's Hang Seng Index crept up by 0.2 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index climbed by 0.4 percent, the German DAX Index fell by 0.3 percent and the French CAC 40 Index slid by 0.6 percent.
In the bond market, treasuries saw modest strength after trending lower over the past few sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.2 basis points to 4.273 percent.
Looking Ahead
Trading on Tuesday is likely to driven by reaction to the Labor Department's report on consumer price inflation in the month of July.
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