Stocks have shown a lack of direction over the course of morning trading on Monday, with the major averages bouncing back and forth across the unchanged line following the notable pullback seen in the previous week.
Currently, the major averages are posting modest gains. The Dow is up 144.99 points or 0.4 percent at 33,879.87, the Nasdaq is up 2.29 points or less than a tenth of a percent at 13,663.01 and the S&P 500 is up 4.38 points or 0.1 percent at 4,403.33.
The lackluster performance on Wall Street comes as traders seem reluctant to make significant moves ahead of the release of closely watched data on consumer and producer price inflation later in the week.
The inflation data may have a considerable impact on the outlook for interest rates following last week’s mixed monthly jobs report.
The annual rate of growth by core consumer prices, which exclude food and energy prices, is expected to slow to 5.0 percent from 5.3 percent.
Ahead of the inflation data, CME Group’s FedWatch Tool is indicating a 92.4 percent chance of another quarter point rate hike at the next Fed meeting later this month.
In U.S. economic news, the Commerce Department released a report showing wholesale inventories were roughly flat in the month of May.
The Commerce Department said wholesale inventories were virtually unchanged in May after falling by a revised 0.3 percent in April.
Economists had expected wholesale inventories to edge down by 0.1 percent, matching the dip originally reported for the previous month.
Reflecting the lackluster performance being turned in by the broader markets, most of the major sectors are showing only modest moves on the day.
Housing stocks have shown a strong move to the upside, however, with the Philadelphia Housing Sector Index jumping by 1.9 percent.
Significant strength is also visible among airline stocks, as reflected by the 1.8 percent gain being posted by the NYSE Arca Airline Index.
Networking, semiconductor and biotechnology stocks are also seeing some strength on the day, while utilities stocks have moved to the downside.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan’s Nikkei 225 Index fell by 0.6 percent, while Hong Kong’s Hang Seng Index rose by 0.6 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the French CAC 40 Index has climbed by 0.5 percent, the U.K.’s FTSE 100 Index and the German DAX Index are both up by 0.4 percent.
In the bond market, treasuries continue to show a lack of direction after ending the previous session roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 4.042 percent.
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