Stocks have moved modestly higher in morning trading on Monday, extending the upward trend seen over the past several sessions. With the continued upward move, the Dow has reached a new record intraday high.
Currently, the major averages are off their best levels of the day but still slightly higher. The Dow is up 109.75 points or 0.3 percent at 36,437.70, the Nasdaq is up 10.20 points or 0.1 percent at 15,981.79 and the S&P 500 is up 4.70 points or 0.1 percent at 4,702.23.
The modest strength on Wall Street partly reflects a positive reaction to news that the House of Representatives has passed a $1 trillion infrastructure bill.
The bill, which was approved in a largely party-line 228-206 vote late Friday, now heads to President Joe Biden’s desk for his signature.
However, traders seem reluctant to make more significant moves amid some uncertainty about the near-term outlook for the markets following the recent upward trend.
A lack of major U.S. economic data may also be keeping some traders on the sidelines ahead of the release of reports on producer and consumer prices and consumer sentiment in the coming days.
Oil service stocks are seeing significant strength in morning trading, resulting in a 3.2 percent jump by the Philadelphia Oil Service Index.
The rally by oil service stocks comes amid an increase by the price of crude oil, with crude for December delivery climbing $0.57 to $81.84 a barrel.
Steel stocks are also seeing substantial strength on the heels of upbeat Chinese export data, driving the NYSE Arca Steel Index up by 3.2 percent.
Oil producer and chemical stocks are also seeing notable strength on the day, while utilities and networking stocks have moved to the downside.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan’s Nikkei 225 Index and Hong Kong’s Hang Seng Index both fell by 0.4 percent, while Australia’s S&P/ASX 200 Index edged down by 0.1 percent.
Meanwhile, the major European markets have moved modestly higher on the day. While the French CAC 40 Index is up by 0.2 percent, the U.K.’s FTSE 100 Index and the German DAX Index are both up by 0.1 percent.
In the bond market, treasuries are giving back ground after moving notably higher over the two previous sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.2 basis points at 1.485 percent.
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