While selling pressure has remained relatively subdued, stocks have moved mostly lower in early trading on Monday. The markets are seeing further downside following the considerable weakness that was seen last week.
The major averages are currently all in the red, although the Nasdaq is posting a relatively modest loss. While the Nasdaq is down 1.02 points or less than a tenth of a percent at 2,731.76, the Dow is down 40.91 points or 0.3 percent at 12,110.35 and the S&P 500 is down 5.46 points or 0.4 percent at 1,294.70.
The modest weakness on Wall Street comes amid a lack of major economic reports, which has left last Friday's weak jobs report as the last thing in traders' minds regarding the economic outlook.
The economic calendar remains relatively light throughout the remainder of the week as well, which could contribute to choppy trading. Nonetheless, traders are likely to keep an eye on reports on weekly jobless claims, the U.S. trade deficit, and wholesale inventories.
Most of the major sectors have moved to the downside in early trading, with notable weakness visible among airline stocks. The NYSE Arca Airline Index has fallen by 1.4 percent, dropping to its lowest intraday level in well over a month.
The weakness among airline stocks comes after the International Air Transport Association reduced its 2011 profit outlook for the industry, citing natural disasters, high oil prices and political unrest in the Middle East and North Africa.
Banking stocks have come under pressure, dragging the KBW Bank Index down by 1.7 percent to a six-month intraday low. Tobacco, health care, and housing stocks are also seeing early weakness.
Meanwhile, shares of Apple (AAPL) are trading higher as the iPod and iPhone maker kicks off its Worldwide Developers Conference in San Francisco. Apple CEO Steve Job, who is on a medical leave of absence, is set to make a rare appearance and deliver the keynote address.
In its quest to climb on to the "cloud computing" bandwagon, Apple is set to unveil its own cloud application, the "iCloud", at the conference.
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