Torsten Asmus
Major market averages opened trading mixed on Monday after the three major averages capped off last week with gains on favorable inflation data, while market participants look ahead to corporate earnings.
The benchmark S&P 500 (SP500) was flat, the blue-chip Dow (DJI) fell 0.1%, and the tech-heavy Nasdaq Composite (NDX:IND) advanced by 0.3%.
On the week, the Dow was up 2.3%, the best weekly gain in 4 months, Nasdaq rose 3.3% and the S&P 500 was up 2.4%.
Treasury yields declined Monday after yields closed higher on Friday. Moreover, Morgan Stanley says that they expect yields to trend lower.
The yield on the 10-year Treasury (US10Y), which influences mortgage rates, gained 1 basis points to 3.82% and 2-year Treasury (US2Y) yield was up 2 basis point to 4.77%.
As Fed officials entered the quiet period on July 15 ahead of the July 25-26 meeting, investors will look ahead to retail sales and industrial production on Tuesday and housing data on Wednesday and Thursday.
On the economic data front, the NY Empire State Manufacturing Index arrived. Data stayed positive for a second straight month, as it came in at +1.1% versus the -3.0 consensus level.
More on the Upcoming week:
