U.S. Stocks Turning In Mixed Performance Ahead Of Jackson Hole Summit
After ending last Friday’s trading narrowly mixed, the major U.S. stock indexes have once again moved in opposite directions during trading on Monday. While the Dow has moved to the downside, the tech-heavy Nasdaq has climbed firmly into positive territory.
Currently, the Nasdaq is off its best levels of the day but remains up 78.58 points or 0.6 percent at 13,369.36. The S&P 500 is posting a more modest gain, up 4.22 points or 0.1 percent at 4,373.93, while the Dow is down 147.07 points or 0.4 percent at 34,353.59.
The advance by the Nasdaq comes as traders pick up tech stocks at reduced levels following recent weakness, with the index bouncing off its lowest closing level in two months.
Cybersecurity company Palo Alto Networks (PANW) is posting a standout gain after reporting better than expected fiscal fourth quarter earnings.
Shares of Nvidia (NVDA) have also moved notably higher after HSBC reiterated a Buy rating on the chipmaker’s stock and raised its price target.
Meanwhile, a steep drop by Johnson & Johnson (JNJ) is weighing on the Dow, with the healthcare giant slumping by 3.0 percent.
Johnson & Johnson said its offer to its shareholders to exchange their shares of J&J common stock for shares of Kenvue (KVUE) common stock owned by the company was oversubscribed.
Overall trading activity remains somewhat subdued, however, with a lack of major U.S. economic news likely keeping some traders on the sidelines.
Traders may also be reluctant to make significant moves as they await news out of Jackson Hole, Wyoming, where major central bankers are congregating later in the week to deliberate on monetary policy.
Most of the major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.
Interest rate-sensitive utilities and housing stocks are seeing some weakness, however, with the Dow Jones Utility Average and the Philadelphia Housing Sector Index both down by 1.1 percent.
On the other hand, software stocks have shown a notable move to the upside, driving the Dow Jones U.S. Software Index up by 1.0 percent.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan’s Nikkei 225 Index rose by 0.4 percent, while China’s Shanghai Composite Index slumped by 1.2 percent.
The major European markets have also turned mixed on the day. While the U.K.’s FTSE 100 Index has edged down by 0.1 percent, the German DAX Index is up by 0.2 percent and the French CAC 40 Index is up by 0.4 percent.
In the bond market, treasuries have pulled back sharply following the rebound seen last Friday. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 9.1 basis points at 4.342 percent.
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