Stocks Move Modestly Higher, Nasdaq Sets New Record High - U.S. Commentary

(RTTNews) - After initially showing a lack of direction, stocks have moved modestly higher over the course of the trading day on Monday. With the upward move, the tech-heavy Nasdaq has reached another new record intraday high.

Currently, the major averages are hovering above the unchanged line. The Dow is up 36.61 points or 0.2 percent at 18,123.06, the Nasdaq is up 13.45 points or 0.3 percent at 5,223.59 and the S&P 500 is up 3.75 points or 0.2 percent at 2,130.39.

The modest strength that has emerged on Wall Street may partly reflect a positive reaction to the latest earnings news as the reporting season gets into full swing.

Toymaker Hasbro (HAS) and oil service giant Halliburton (HAL) are both posting notable gains after reporting second quarter earnings that came in better than expected.

Shares of Morgan Stanley (MS) have also moved modestly higher after the financial giant reported second quarter earnings that exceeded analyst estimates.

Nonetheless, trading activity has remained somewhat subdued as traders stay on the sidelines amid the lack of major U.S. economic data on the day.

The economic calendar remains relatively light throughout the week, although reports on weekly jobless claims and new and existing home sales are likely to attract some attention.

Traders may also be reluctant to make significant moves ahead of the release of earnings news from a number of big-name companies in the coming days.

Apple (AAPL), Yahoo (YHOO), Verizon (VZ), General Motors (GM), Coca-Cola (KO), and Microsoft (MSFT) are among the slew of companies due to release their results this week.

Sector News

Despite the advance shown by the broader markets, most of the major sectors continue to show only modest moves in mid-day trading.

Substantial weakness remains visible among gold stocks, however, with the NYSE Arca Gold Bugs Index plunging by 8.2 percent. With the drop, the index has fallen to its lowest levels in over twelve years.

The weakness among gold stocks comes amid a sharp drop by the price of the precious metal, with gold for August delivery plummeting $23.30 to $1,108.60 an ounce.

Natural gas, electronic storage, and airline stocks are also seeing notable weakness, while some strength has emerged among tobacco and banking stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Monday, with the Japanese markets closed for a holiday. Hong Kong's Hang Seng Index edged down by less than a tenth of a percent, while Australia's All Ordinaries Index rose by 0.3 percent.

Meanwhile, the major European markets all moved to the upside on the day. While the U.K.'s FTSE 100 Index edged up by 0.2 percent, the French CAC 40 Index and the German DAX Index rose by 0.4 percent and 0.5 percent, respectively.

In the bond market, treasuries have moved moderately lower after ending the two previous sessions nearly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2 basis points at 2.369 percent.