By William L. Watts and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks hovered near the flatline
on Monday as investors awaited economic data, including the June
jobs report, later this week, leaving major indexes on track for
the biggest second-quarter gains since 2009.
The S&P 500 (SPX) was less than a point higher at 1,961.45,
while the Dow Jones Industrial Average (DJI) slipped 12.74 points,
or less than 0.1%, to 16,839.35 The Nasdaq Composite (RIXF) rose
10.75 points, or 0.2%, to 4,408.73. See: Stock market live
blog.
"Equities are on track for their fifth straight month of gains
as investors continue to shrug off market concerns and carry on
embracing risk. However, the current lofty market levels are
creating concerns that global central banks are storing up
dangerous risks of excessive leverage as they pursue overly
stimulative policy for too long," said Rebecca O'Keeffe, head of
investment at Interactive Investors in London, in a note.
Among individual stocks, shares of Yahoo Inc. (YHOO) gained 2.2%
after Piper Jaffray upgraded shares to overweight. Bank of New York
Mellon(BK) climbed 2% as activist investor Trian Fund Management
builds up a stake, according to The Wall Street Journal.
Also read: MannKind leaps, American Apparel sinks
The S&P 500 and Dow erased small declines to turn slightly
higher after a gauge of pending home sales jumped 6.1% in May to
hit its highest level in eight months. Stocks had little reaction
to a weaker-than-expected reading on the Chicago Purchasing
Managers' Index.
This week will be shortened by the Fourth of July holiday on
Friday, which means closely watched U.S. jobs data for June will be
released on Thursday. Economists are looking for the addition of
215,000 nonfarm-payrolls jobs and no change in the unemployment
rate of 6.3%.
Monday's session will mark the end of trading for June as well
as for the second quarter. After a run to record closes, the
S&P 500 index is poised for a quarterly gain of 4.7%, and the
Dow Jones Industrial Average was looking at an increase of 2.2%.
The Nasdaq Composite Index was also set for a quarterly gain of
4.8%. It would be the sixth straight quarterly gain for both the
S&P and Nasdaq.
For the first half of 2014, the S&P 500 was on track for a
6% rise, with the Dow industrials up 1.4%, and the Nasdaq up 5.4%.
Airline, pharmaceutical, and utilities stocks led advancers during
the period, which was marked by the impact of bad weather, a drop
in first-quarter gross domestic product and a decline in Treasury
yields.
Also read: Market exuberance out of touch with economy.
In other markets, Asian shares ended mixed, with Japan's Nikkei
Average posting a 0.4% gain. European stocks were flat after a
reading of steady inflation in the euro zone.
The ICE dollar index (DXY), which pits the greenback against six
other currencies, fell to 79.971 from 80.331 late Friday.
Oil futures (CLQ4) were off 4 cents at $105.70 a barrel, and
gold futures (GCQ4) declined $4.to $1,316 an ounce.
More must-reads from MarketWatch:
Forget first-quarter shocker: economy OK
Japanese industry makes (modest) rebound
Europe studying Abenomics lessons from Japan
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