Stocks Tread Water in Sleepy Session

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No, that’s not a mistaken introductory sentence — take it as a way to impart that any generic this-is-why-stocks-lost-0.2%-on-Monday story is as good as any other.

The reality of Monday’s trade was that there barely was any: With some Asian and all European markets closed, there was little frenetic atmosphere for U.S. traders, fresh off their own three-day absence from the markets, to pick up on.

The result: a low-volume (in fact, the lowest trading volume session so far this year) sideways trade that has the market beginning on Thursday essentially where it left off last Thursday.

But for the record: The Dow Jones Industrial Average lost 26 points to 12,480, the Nasdaq gained 6 points to 2826 and the S&P 500 slipped 2 points to 1335.

You’ll forgive us for not reading much into the movement of specific sectors on Monday, but instead we’ll round out the few significant movers in other markets: the 10-year Treasury note actually saw some interesting movement, catching a decent bid and taking the yield down to 3.37%.

As we noted recently, a look at a six-month chart of the 10-year yield shows a steady downtrend that began in February when it hit a 10-month high. Monday’s action keeps that move lower even safer.

Weakness in the dollar continued, helping prices initially tick higher in oil, gold and silver. Oil ended up finishing with a small loss to $112.13 a barrel, while gold and silver retreated below the all-time and 31-year-highs (unadjusted for inflation) they were hugging this morning.

We’re left then with a promise for greater investor attention as the week goes on, and the question of what a slew of earnings reports and economic data (including a midweek Fed meeting) will do for a market that has managed to pull itself above every dip since early 2009 but also has not gained a point in more than two months.

In perhaps an ominous first step, tech high-flier Netflix (NASDAQ:NFLX) slipped after the closing bell on Monday following a strong earnings report that may not have been strong enough to justify the company’s $250 stock price.

Considering fellow investor darling Apple (NASDAQ:AAPL) has begun to show signs of sluggish investor enthusiasm with a series of lower highs since February, stocks may need help from nontech sectors for significant move higher from here.


Article printed from InvestorPlace Media, https://investorplace.com/2011/04/stocks-tread-water-in-sleepy-session/.

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