U.S. Stocks Turning In Lackluster Performance After Last Week's Rally

(RTTNews) - After turning in a strong performance last week, stocks have shown a lack of direction over the course of the trading session on Monday. The major averages have spent the day bouncing back and forth across the unchanged line.

Currently, the major averages are narrowly mixed. While the Nasdaq is down 36.81 points or 0.2 percent at 17,346.16, the S&P 500 is up 1.47 points or less than a tenth of a percent at 5,526.68 and the Dow is up 133.49 points or 0.3 percent at 40,246.99.

The choppy trading on Wall Street comes as traders seem reluctant to make significant moves as the look ahead to the release of key earnings and economic news in the coming days.

Four of the "Magnificent Seven" companies - Amazon (AMZN), Apple (AAPL), Meta Platforms (META) and Microsoft (MSFT) - are among the companies due to report their quarterly results this week.

Big-name companies like Coca-Cola (KO), Visa (V), Eli Lilly (LLY), Chevron (CVX) and Exxon Mobil (XOM) are also due to report their quarterly results.

The Labor Department's monthly jobs report is also likely to be in focus later this week along with the Federal Reserve's preferred readings on consumer price inflation.

Traders are also keeping a close eye on developments on the trade front, with Treasury Secretary Scott Bessent telling ABC News' "This Week" on Sunday he believes an agreement in principle can reached on "17 or 18 important trade deals" the administration is currently negotiating.

"A trade deal can take months, but an agreement in principle and the good behavior and staying within the parameter of the deal by our trading partners can keep the tariffs there from ratcheting back to the maximum level," Bessent said.

Meanwhile, in a separate interview with CNBC's "Squawk Box" this morning, Bessent said he believes it's up to China to de-escalate, "because they sell five times more to us than we sell to them."

Sector News

Most of the major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.

Networking stocks have shown a strong move to the upside, however, with the NYSE Arca Networking Index climbing by 1.2 percent.

Notable strength is also visible among telecom stocks, as reflected by the 1.2 percent gain being posted by the NYSE Arca North American Telecom Index. Biotechnology and housing stocks are also seeing some strength.

Other Markets

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 dipped by 0.2 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the French CAC 40 Index is up by 0.7 percent, the German DAX Index is up by 0.5 percent and the U.K.'s FTSE 100 Index is up by 0.3 percent.

In the bond market, treasuries are seeing modest strength, extending a recent upward trend. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.1 basis points at 4.245 percent.