Markets Cautious on Monday

In a quiet trading day ahead of the Fourth of July holiday, market participants appear to be exercising caution on Monday. Heading into the final hour of trade, the major averages were mixed with the Dow and S&P trading down slightly and the Nasdaq registering a small gain. The leading sectors on the day have been healthcare and utilities, underscoring the lack of risk appetite to start the week. Higher beta sectors such as basic materials, energy, financials, and consumer cyclicals are all lower on the session. Commodities, another area that is useful in gauging risk appetite, are also lower. Crude oil was down around 1.60%, while gold had registered a loss of 0.40% and copper was down nearly 1%. Both corn and wheat, however, have staged strong rallies on the back of severe heat and drought throughout much of the country.