Stocks Begin Week Mixed With Key Data on the Horizon…..

U.S. equities began a busy week of data mixed, as stocks appeared to pause to take inventory of a market that just last week rallied back to record highs. The pause seemed to be in response to a glut of key global data reports set to be released later in the week on manufacturing and labor, as well as an uptick in concerns over the Delta variant of COVID-19 worldwide. Growth-related issues led the day enabling the Nasdaq to reach uncharted territory, while a pullback in Treasury yields as Treasury prices climbed also provided tailwind for the more growth-oriented sectors. In equity news, Intellia Therapeutics jumped after it and partner Regeneron Pharmaceuticals announced positive study results of their genome editing candidate, while Dow member Boeing slipped after reports that the FAA notified the airplane manufacturer that certification approval for its 777X jet will not be granted until mid-to-late 2023. The economic calendar was relatively light today but a read on regional manufacturing activity showed a slight deceleration but continued solid growth. The U.S. dollar was modestly higher after last week’s retreat, while gold dipped slightly and crude oil prices were lower. Asia was subdued to begin the week and Europe closed mostly lower and in the process gave back some of last week’s gains.

The Dow Jones Industrial Average fell 151 points (0.4%) to 34,283, the S&P 500 Index increased 10 points (0.2%) to 4,291, and the Nasdaq Composite increased 140 points (1.0%) to 14,501. In moderate volume, 920 million shares were traded on the NYSE and 4.2 billion shares changed hands on the Nasdaq. WTI crude oil declined $1.14 to $72.91 per barrel. Elsewhere, the Bloomberg gold spot price decreased $2.43 to $1,779.01 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—increased 0.1% to 91.90.

Regional manufacturing continues solid growth, commencing the week headlined by labor report…..

The June Dallas Fed Manufacturing Index dipped slightly more than expected but remained solidly in expansion territory (a reading above zero). The index slid to 31.1 from 34.9 in May and compared to the Bloomberg forecast calling for a decline to 32.5.

Treasuries were higher, as the yield on the 2-year note dipped 1 basis point (bp) to 0.25%, the yield on the 10-year note declined 5 bps to 1.48%, and the rate on the 30-year bond decreased 6 bps to 2.09%.

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