Stocks were trading mixed on Monday, buoyed by positive news in the technology sector and amid an absence of new economic data for investors to fret over. A retreat in oil prices and some easing of inflationary worries were also providing support.
On Monday, the Dow Jones industrial average was trading 7.73 points, or 0.06%, higher at 12,753.61. The broader S&P 0 index edged down 0.95 points, or 0.07%, to trade at 1,387.33. The tech-heavy Nasdaq composite index was up 1.95 points, or 0.08%, at 2,447.47.
As the height of earnings season nears an end, and with a light economic calendar, oil prices could dictate the direction of equities, S&P MarketScope said.
On Mondday, oil prices took a breather after a series of record highs last week due to concerns that high prices will curb demand. Bloomberg News reported a decline China's oil imports in April as crude costs prompted refiners in the world's second-largest energy-consuming country to cut demand. Industrial production in India grew at the slowest pace since 2002, according to government data. meanwhile, a stronger dollar against the euro is limiting oil's appeal as a currency hedge, Bloomberg said.
On the NYMEX, crude oil for June delivery was trading 61 cents lower at $125.35 per barrel.
A stronger dollar was putting pressure on gold, with June gold off $2.00 to $883.90 on bets that the Federal Reserve is done easing.
Research in Motion (RIMM) was trading higher on news that the company, Thomson Reuters, and the Royal Bank of Canada will launch BlackBerry Partners Fund, a $150 million venture capital fund, to invest in mobile applications, services for the BlackBerry platform, and other mobile platforms. The company also introduced the Blackberry Bold Smartphone and signed a deal with Microsoft (MSFT) that will give BlackBerry Smartphone customers easy mobile access to Windows Live Messenger and an enhanced level of integration between Windows Live Hotmail and the BlackBerry platform.
The new batch of economic data starts Tuesday with a reports on import prices, retail sales and business inventories, all of which will be watched closely for further clues to the state the economy. Inflation-watchers are waiting for Wednesday's consumer price data. Jobless claims numbers are released on Thursday, and Friday brings April housing starts and a first look at the May Reuters/University of Michigan Consumer Sentiment index.
Last week brought news of a narrowing U.S. trade deficit and improvement in one measure of consumner sentiment -- the Royal Bank of Canada's Consumer Attitudes and Spending by Household, or CASH, Index, which bounced nearly 10 points in May and reversed a six-month downtrend. But concerns about recession and the ongoing credit crunch are still weighing on the markets.
Among other stocks in the news Monday, AnnTaylor Stores (ANN) shares rose on a higher earnings forecast of 45 to 47 cents per share in the first quarter, excluding a previously announced restructure charge, vs. previous guidance of 35 to 40 cents per share. The retailer cited stronger results at LOFT, better overall expense, and inventory management. It also said that based on preliminary figures, net sales in Q1 increased 2%, while comparable sales declined 4.3%.
MBIA Inc. (MBI) shares were up after the monoline insurer posted a $13.03 Q1 loss vs. $1.46 in profits a year ago, on a 43% drop in net premiums written. The company notes $3.6 billion in unrealized losses on insured derivatives, and said it received subpoenas or informal inquiries from variety of regulators on variety of subjects, including disclosures made by the company to underwriters, issuers of certain bonds.
Major European indexes were trading higher Monday. In London, the FTSE 100 index climbed 0.29% to trade at 6,222.90. In Paris, the CAC 40 index rose 0.50% to 4,985.18, and Germany's DAX index was up 0.55% at 7,041.37.
In Asia, Japan's Nikkei 225 gained 0.64% to end at 13,743.36, and Hong Kong's Hang Seng index was closed for a holiday.
Treasury market
Treasuries were higher on Monday. The ten-year note rose 06/32 to 101-01/32 for a yield of 3.75%, and the 30-year bond was up 14/32 to 98-01/32 for a yield of 4.49%.