Stocks Showing A Lack Of Direction Ahead Of Key Events - U.S. Commentary

(RTTNews) - Stocks are turning in a lackluster performance in early trading on Monday, extending the trend that was seen throughout the previous week. The major averages are lingering near the unchanged line, showing only modest moves.

The major averages are currently turning in a mixed performance, with the Nasdaq posting a modest gain. While the Nasdaq is up 4.30 points or 0.1 percent at 3,617.46, the Dow is down 4.07 points or less than a tenth of a percent at 15,554.76 and the S&P 500 is down 1.33 points or 0.1 percent at 1,690.32.

The choppy trading on Wall Street comes as traders are staying on the sidelines ahead of some key events later in the week.

Traders are particularly focused on the outcome of the Federal Reserve's two-day monetary policy meeting that begins on Tuesday.

The Fed is not widely expected to announce plans to taper its asset purchase program when it releases its statement on Wednesday, but traders will be looking for any signals regarding the September meeting.

Along with the Fed meeting, traders will also be keeping a close eye on the monthly jobs report as well as the initial report on second quarter GDP.

Most of the major sectors are showing only modest moves in early trading, contributing to the lack of direction being shown by the broader markets.

Healthcare provider stocks are seeing significant strength, however, with the Morgan Stanley Healthcare Provider Index up by 1.8 percent. Health Management Associates (HMA) is leading the sector higher, surging up by 7 percent.

Among individual stocks, shares of Elan (ELN) are seeing early strength after the drug maker agreed to be acquired by Perrigo (PRGO) for $8.6 billion in cash and stock.

Retailer Saks (SKS) is also moving higher in early trading after agreeing to be acquired by Hudson's Bay in a $2.4 billion, all-cash deal.

On the other hand, shares of Norwegian Cruise Line Holdings (NCLH) are seeing early weakness after the cruise line operator reported a second quarter loss on weaker than expected revenues.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan's Nikkei 225 Index tumbled by 3.3 percent, while Hong Kong's Hang Seng Index ended the day down by 0.5 percent.

Meanwhile, the major European markets are seeing modest strength on the day. While the French CAC 40 Index has risen by 0.4 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both up by 0.2 percent.

In the bond market, treasuries are moved to the downside as traders look ahead to the Fed's monetary policy announcement. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.1 basis points at 2.582 percent.