Stocks showed a lack of direction over the course of the trading session on Monday, with the major averages bouncing back and forth across the unchanged line following the modest pullback seen during last Friday’s session.
By the close of trading, the major averages were narrowly mixed.
The choppy trading on Wall Street came despite President Donald Trump’s threats to impose 30 percent tariffs on imports from the European Union and Mexico beginning August 1st.
Trump claimed in a post on Truth Social early Monday morning that the U.S. had been “ripen off” on trade for decades, costing the country trillions of dollars.
“Countries should sit back and say, ‘Thank you for the many year’s long free ride, but we know you now have to do what’s right for America,’” Trump said. “We should respond by saying, ‘Thank you for understanding the situation we are in. Greatly appreciated!’”
Meanwhile, the EU announced it would suspend the implementation of its trade countermeasures against the U.S. until early August to allow more time for a negotiated settlement to the issue.
Responding to Trump’s letter at a news conference on Sunday, European Commission President Ursula von der Leyen said, “We will therefore also extend the suspension of our countermeasures till early August. At the same time, we will continue to prepare further countermeasures so we are fully prepared.”
“We have always been very clear that we prefer a negotiated solution. This remains the case, and we will use the time that we have now till the 1st of August (to negotiate),” she told reporters in Brussels.
The EU’s retaliatory tariff on $25 billion worth of American goods for the 25 percent import duty that the U.S. imposed on steel and aluminum imports from Europe had been set to come into force Monday.
Traders appeared reluctant to make significant moves ahead of the release of some key economic data later this week, including reports on consumer and producer prices, retail sales, and industrial production.
Earnings season was also expected to pick up steam, with Citigroup (NYSE:C), JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), Johnson & Johnson (JNJ), and Netflix (NFLX) among the big-name companies due to report their quarterly results.
Sector News
Reflecting the lackluster performance by the broader markets, most of the major sectors showed only modest moves on the day.
Oil service stocks showed a significant move to the downside, with the Philadelphia Oil Service Index plunging by 3.0 percent.
Oil producer, steel, and housing stocks also saw notable weakness, while some strength was visible among brokerage stocks.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Monday. Japan’s Nikkei 225 Index dipped by 0.3 percent, while China’s Shanghai Composite Index rose by 0.3 percent.
The major European markets also ended mixed. The U.K.’s FTSE 100 Index rose by 0.4 percent, while the French CAC 40 Index fell by 0.4 percent and the German DAX Index declined by 0.7 percent.
In the bond market, treasuries showed a lack of direction over the course of the session.
SOURCE: RTTNEWS