Stocks Showing A Lack Of Direction Following Mixed Data - U.S. Commentary

(RTTNews) - After moving to the downside last week, stocks are turning in a lackluster performance in early trading on Monday. The major averages have turned mixed on the day after failing to sustain an upward move at the start of trading.

Currently, the major averages remain on opposite sides of the unchanged line. While the Nasdaq is down 14.08 points or 0.3 percent at 4,117.83, the Dow is up 27.10 points or 0.2 percent at 16,497.09 and the S&P 500 is up 1.36 points or 0.1 percent at 1,832.73.

The choppy trading on Wall Street reflects uncertainty about the outlook for the markets following the release of a mixed batch of U.S. economic data.

While a report from the Institute for Supply Management showed that activity in the service sector unexpectedly grew at a slower rate in December, the Commerce Department reported a bigger than expected increase in factory orders in November.

The ISM said its non-manufacturing index edged down to 53.0 in December from 53.9 in November, although a reading above 50 still indicates growth in the service sector.

The modest decrease came as a surprise to economists, who had been expecting the index to creep up to a reading of 54.8.

Meanwhile, the Commerce Department said factory orders increased by 1.8 percent in November following a revised 0.5 percent decrease in October.

Economists had expected orders to rise by 1.6 percent compared to the 0.9 percent drop that had been reported for the previous month.

Most of the major sectors are showing only modest moves in early trading, contributing to the lack of direction being shown by the broader markets.

Steel stocks have come under pressure, however, with the NYSE Arca Steel Index down by 1.3 percent. The index is pulling back further off the eleven-month closing high it set last Tuesday.

On the other hand, banking stocks are seeing considerable strength on the day, driving the Dow Jones Banks Index up by 1.2 percent. With the gain, the index has reached a five-year high.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan's Nikkei 225 Index tumbled by 2.4 percent, while Hong Kong's Hang Seng Index ended the day down by 0.6 percent.

Meanwhile, the major European markets have turned mixed on the day. While the French CAC 40 Index has edged down by 0.1 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both up by 0.2 percent.

In the bond market, treasuries are moving to the upside after ending the previous session modestly lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.6 basis points at 2.959 percent.