Major Averages Close Modestly Higher But Well Off Best Levels

(RTTNews) - After showing a lack of direction throughout much of morning trading on Monday, stocks moved mostly higher in the afternoon. Buying interest remained relatively subdued, however, limiting the upside for the markets.

The higher close by the broader markets was partly due to considerable strength that emerged among transportation stocks.

Reflecting the strength in the transportation sector, the Dow Jones Transportation Average advanced 1.1 percent, bouncing off a seven-month closing low.

Airline stocks helped to lead the way higher, resulting in a 1.5 percent gain by the NYSE Arca Airline Index. Industry giants American Airlines (AAL), Delta (DAL), and United Continental (UAL) turned in some of the best performances.

Notable strength was also visible among commercial real estate stocks, as reflected by the 1.2 percent gain posted by the Morgan Stanley REIT Index.

While most of the other major sectors showed more modest moves, some weakness was visible among gold, steel, and oil service stocks.

The major averages pulled back well off their best levels going into the close but managed to end the day modestly higher. The Dow edged up 29.69 points or 0.2 percent to 18,040.37, the Nasdaq rose 12.90 points or 0.3 percent to 5,082.93 and the S&P 500 crept up 4.34 points or 0.2 percent to 2,111.73.