After Friday's worst one-day drop since late June, the
S&P and other US stock indexes opened higher as earnings season kicked into
high gear. But weak homebuilding data reminded investors of the delicate state
of the economic recovery.
Gold fell to a two-month low amid a sharper appetite for
riskier assets, while oil prices trimmed earlier gains.
But markets lost ground after data showed homebuilder
sentiment fell more than expected in July to its lowest level in more than a
year after a popular homebuyer tax credit expired. That erased gains from
Halliburton Co. and Boeing Co.
Traders were reluctant to take fresh positions ahead of
Fed Chairman Ben Bernanke's comments on the economy on Wednesday. He could
temper fears of a double-dip recession when he testifies at his semi-annual
appearance before Congress.
The Dow Jones Industrial Average was up 8.93 points, or
0.09 percent, at 10,106.83. The Standard & Poor's 500 Index was up 0.20
points, or 0.02 percent, at 1,065.08. The Nasdaq Composite Index was up 1.57
points, or 0.07 percent, at 2,180.62.
World stocks as measured by MSCI edged down 0.3 percent,
while its emerging market counterpart lost 0.5 percent.
In Europe, the FTSEurofirst 300 index closed negative
after the US homebuilder sentiment, falling 0.6 percent.
Optimism over a pickup in M&A activity helped provide
some support to the index. Asian stocks excluding Japan fell 1 percent.
The euro was up 0.18 percent at $1.2953, against the
dollar and rebounding from lows hit after Moody's downgraded Ireland's
sovereign ratings.
The dollar has been pressured in recent weeks as
disappointing US economic news quashed expectations of an interest-rate hike by
the Federal Reserve, diminishing the currency's yield appeal.
Semi-official euro demand was helping push the rate back
above $1.2900. A large buy order from the Middle East lifted euro/dollar to a
session high of $1.2991.
US oil prices rose for the first time in four sessions on
Monday.
US crude oil for August delivery on the New York
Mercantile Exchange rallied $1.68 to an early intraday peak of $77.69 before
easing back to trade at $76.20 a barrel, up 19 cents, by 12:12 p.m. EDT (1612
GMT).
The contract settled 61 cents lower at $76.01 on Friday,
a third consecutive drop but ending little changed from the previous week.
London ICE Brent crude on Monday gained 5 cents to
$75.42, well off its earlier $77.20 peak.
