Major Averages Close Mixed Following Lackluster Session - U.S. Commentary

(RTTNews) - Stocks showed a lack of direction throughout much of the trading session on Monday, extending the lackluster performance that was seen in the previous week.

The major averages eventually ended the day on opposite sides of the unchanged line. While the Nasdaq inched up by 6.22 points or 0.1 percent to 5,244.60, the Dow dipped by 23.15 points or 0.1 percent to 18,529.42 and the S&P 500 edged down by 1.23 points or 0.1 percent to 2,182.64.

The lack of direction on Wall Street partly reflected uncertainty about the outlook for interest rates ahead of a speech by Federal Reserve Chair Janet Yellen later in the week.

Yellen is due to speak at the Kansas City Fed's monetary policy symposium in Jackson Hole, Wyoming, on Friday, and traders are likely to keep a close eye on her remarks for clues about the outlook for rates.

Reports on durable goods orders, second quarter GDP, and new and existing home sales are also likely to attract attention in the coming days.

A sharp pullback by the price of crude oil also weighed on the markets, with crude oil for September delivery slumping $1.47 to $46.75 a barrel.

The price of crude oil has recently benefited from optimism that a meeting of oil-producing nations next month could lead to curtailed production.

Oil service stocks moved significantly lower along with the price of crude oil, dragging the Philadelphia Oil Service Index down by 2.3 percent.

Gold stocks also moved notably lower amid a drop by the price of the precious metal, while substantial strength was visible among biotechnology stocks.

In overseas trading, stock markets across the Asia-Pacific region turned in yet another mixed performance during trading on Monday. Japan's Nikkei 225 Index rose by 0.3 percent, while China's Shanghai Composite Index dropped by 0.8 percent.

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

In the bond market, treasuries rebounded following the pullback seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped by 3.9 basis points to 1.539 percent.

Trading on Tuesday may be impacted by reaction to the Commerce Department's report on new home sales in the month of July.