Mixed Sentiment Carries Over from Last Week…..

U.S. stocks were mixed in the first session of a shortened week following the three-day Labor Day holiday weekend. The markets finished last week mixed after digesting Friday’s much softer-than-expected August nonfarm payroll report, which did not seem to change the outlook for Fed tapering sometime in Q4. Equity news was relatively light, though State Street Corporation agreed to acquire Brown Brothers Harriman & Co’s investor services business for $3.5 billion in cash, while PPG withdrew its guidance after warning of the impact related to supply-chain disruptions. The economic calendar was void of any major releases today, but will heat up tomorrow with some key employment data, as well as a read on wholesale price inflation later in the week. Treasuries were lower, seeing a rise in yields, and the U.S. dollar gained ground, while crude oil prices traded modestly lower, and gold tumbled. Europe finished mostly lower and Asia was mixed following some divergent economic reports in their respective regions.

The Dow Jones Industrial Average declined 269 points (0.8%) to 35,100, the S&P 500 Index shed 15 points (0.3%) to 4,520, while the Nasdaq Composite advanced 11 points (0.1%) to 15,374. In moderate volume, 812 million shares were traded on the NYSE and 3.9 billion shares changed hands on the Nasdaq. WTI crude oil shed $0.94 to $68.35 per barrel. Elsewhere, the gold spot price plunged $37.40 to $1,796.30 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—moved 0.6% higher to 92.55.

Treasuries were lower, as the economic calendar was void of any major releases today. The yield on the 2-year note ticked 1 basis point (bp) higher to 0.22%, the yield on the 10-year note rose 5 bps to 1.37%, and the 30-year bond rate gaining 4 bps to 1.98%. The U.S. dollar also moved to the upside.

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