U.S. Stocks Erase Earlier Losses

By Dow Jones Business News, 

By Dan Strumpf

U.S. stocks erased their early losses Monday, as investors weighed disappointing first-quarter updates from two blue-chip stalwarts against a rally in the technology sector.

The Dow Jones Industrial Average fell 10 points, or 0.1%, to 16502 in midmorning trading, bouncing back from an early loss of as much as 136 points earlier in the session. The S&P 500 was nearly unchanged at 1881. The technology- laden Nasdaq Composite Index tacked on two points to 4126.

Investors reversed an early rally in the Treasury market that had sent yields to their lowest level all year. The yield on the 10-year Treasury recently stood at 2.607%, up from 2.590% late Friday. Yields rise when prices fall.

Trading volume was light--with markets in Japan and the U.K. closed on Monday--contributing to Monday's volatility, traders said. Jeff Yu, head of single stock derivatives trading at UBS, said the thin volumes were contributing to the wide swings in stock prices. "It doesn't take that much to move individual stocks themselves," he said.

Gold futures rose 0.8% to $1312.40 an ounce.

Monday's wide swings come as stocks have struggled to push higher this year, as a slowdown in first-quarter earnings growth and a slow-growing economy weigh on investors. On Friday, the Dow fell 46 points despite a better-than- expected reading on corporate hiring in April. The Dow is down 0.5% so far this year, despite eking out an all-time high on Wednesday last week.

Write to Dan Strumpf at daniel.strumpf@wsj.com

  (END) Dow Jones Newswires
  Copyright (c) 2014 Dow Jones & Company, Inc.

This article appears in: Commodities

Referenced Stocks: JPM , PFE

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