Cues From Monday’s Trading:

The S&P 500 Index rose 0.4%, while blue-chip companies in the Dow Jones took a breather and hold steady for the day.

The Nasdaq 100 index outperformed, up 0.8%, while small caps eased 0.4%

US Stock Index Performance On Monday

Analyst Color:

The August market weakness should not unduly worry traders, said fund manager Louis Navellier in a recent note. The S&P 500 Index was down 2.7% for the month and the Nasdaq Composite was down a steeper 4.7%. The fund manager termed this as a relatively modest correction. He also noted that recession fears continue to ease.

“While stocks have been soft so far in August it is also a seasonally weak month, as is September, and with the first seven months of the year setting records, investors shouldn’t be too discouraged,” he said.

U.S. equity sectors’ performance was mixed. Big gains were visible in the the Technology Select Sector SPDR Fund (NYSE:XLK), up 1.1%, followed by the Communication Services Select Sector SPDR Fund (NYSE:XLC), up 0.4%.

The laggards were the the Utilities Select Sector SPDR Fund (NYSE:XLU), down 0.9%, and the Real Estate Select Sector SPDR Fund (NYSE:XLRE), down 0.4%.

Upcoming Economic Data:

The unfolding week's calendar has some key first-tier data that has the potential to move markets.

The spotlight will likely be on the FOMC minutes, the July retail sales report, the results of two regional manufacturing activity surveys for August, the July industrial production data, the July housing starts data and the Conference Board's leading economic index for July. Traders may also keep an eye on the routinely released weekly jobless claims data.

See also: How To Trade Futures

Stocks In Focus:

Commodities, Bonds, Other Global Equity Markets:

Crude oil fell 0.8%, with a barrel of WTI-grade crude trading at $82. The United States Oil Fund ETF (NYSE:USO) was 0.9% lower to $73.  

Treasury yields were broadly steady, with the 10-year yield flat at 4.16% and the two-year yield up by 4 basis points to 4.94%. The iShares 20+ Year Treasury Bond ETF (NYSE:TLT) was 0.5% higher for the day. 

The dollar fell, with the U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), up 0.2%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust (NYSE:FXE), was 0.1% lower to 1.0925.

European equity indexes closed in a mixed fashion. The SPDR DJ Euro STOXX 50 Etf  (NYSE:FEZ) fell 0.3%. 

Staff writer Piero Cingari updated this report midday Monday. 

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