U.S. Stocks Little Changed In Afternoon Trading

After moving modestly higher early in the session, stocks have shown a lack of direction over the course of the trading day on Monday. The major averages have pulled back off their early highs and spent the day bouncing back and forth across the unchanged line.

Currently, the major averages are slightly higher on the day. The Dow is up 26.58 points or 0.1 percent at 38,930.62, the Nasdaq is up 9.58 points or 0.1 percent at 16,258.10 and the S&P 500 is up 3.10 points or 0.1 percent at 5,207.44.

The choppy trading on the day comes as traders seem reluctant to make significant moves ahead of the release of closely watched inflation data later in the week.

Some investors may also be away from their desks as they travel to other parts of the country to get a better view of today’s total solar eclipse.

The Labor Department is scheduled to release its reports on consumer and producer inflation in the month of March on Wednesday and Thursday, respectively.

Economists currently expect consumer prices to rise by 0.3 percent in March following a 0.4 percent increase in February.

Core consumer prices, which exclude food and energy prices, are also expected to climb by 0.3 percent in March after rising by 0.4 percent in February.

The annual rate of consumer price growth is expected to accelerate to 3.4 percent in March from 3.2 percent in February, while the annual rate of core consumer price growth is expected to slow to 3.7 percent for 3.8 percent.

Producer prices are expected to rise by 0.3 percent in March after climbing by 0.6 percent in February, while the annual rate of producer growth is expected to jump to 2.3 percent from 1.6 percent.

The inflation data could have a significant impact on the outlook for interest rates, as Federal Reserve officials have repeatedly said they need greater confidence inflation is slowing before cutting rates.

Wednesday will also see the release of the minutes of the Fed’s latest monetary policy meeting, which could also shed additional light on officials’ thinking on rates.

Most of the major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.

Airline stocks continue to see substantial strength, however, with the NYSE Arca Airline Index soaring by 2.4 percent.

Significant strength also remains visible among steel stocks, as reflected by the 2.1percent gain being posted y the NYSE Arca Steel Index.

Banking stocks have also shown a strong move to the upside on the day, driving the KBW Bank Index up by 1.5 percent.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Monday. Japan’s Nikkei 225 Index jumped by 0.9 percent and Hong Kong’s Hang Seng Index inched up by 0.1 percent, although China’s Shanghai Composite Index bucked the uptrend and slid by 0.7 percent.

The major European markets also moved to the upside on the day. While German DAX Index advanced by 0.8 percent, the French CAC 40 Index climbed by 0.7 percent and the U.K.’s FTSE 100 Index rose by 0.4 percent.

In the bond market, treasuries are extending the notable downward move seen last Friday. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 5.0 basis points at 4.428 percent.