Wall Street erases early gains to close the day little changed
After gaining traction in the first half of the NA session, major equity indexes in the U.S. failed to preserve the momentum to close the day with small changes.
- Forex today: tight ranges and summer drifts ahead of Yellen this week
Technology sector seemed to be outperforming other areas on Monday ahead of the second quarter earnings season. The recent retreat seen in the tech stocks may have created an opportunity for investors to start repurchasing them as the sector is "expected to have had among the strongest earnings growth for the second quarter," according to a recent Reuters report.
First significant earning reports will come from big banks including JPMorgan Chase, Wells Fargo, and Citigroup later this week. The Fed's approval of 34 largest U.S. banks' use of extra capital for stock buybacks and dividends is expected to support the financials for the remainder of the year.
The Dow Jones Industrial Average lost 5.8 points, or 0.03%, to close the day at 21,408.52, the S&P 500 added 2 points, or 0.08%, to 2,424.50 and the Nasdaq Composite gained 23.31 points, or 0.38%, to 6,176.39.
Headlines from the U.S. session:
- G20 Leaders’ Summit: omitted unequivocal commitment to free trade - UOB
- US Treasury yields record moderate losses on Monday
- Investment funds buy $10.969 bln 2-year note in June - U.S. Treasury - Reuters
- Nonfarm payrolls: why wages remain weak? - Scotiabank
- US Retail Sales Preview: looking for hints of a strong rebound for consumer spending in Q2 - Wells Fargo
- US CPI Preview: Inflation continues to drift lower - Wells Fargo
- NY Fed: Medium-term inflation expectations rebound