RTTNews - Stocks moved lower at the start of trading on Monday, with the major averages giving back some ground after moving higher last week. The initial weakness came as some traders cashed in the recent gains amid a lack of economic news.
Gold stocks are posting notable losses in early trading, moving lower along with the price of the precious metal. While early weakness has also emerged in the housing, transportation, and retail sectors, selling pressure has remained somewhat subdued.
On the corporate front, Freddie Mac (FRE) said late Friday that it no longer needs government help at this point of time, as the mortgage lender posted a positive net worth.
Benefiting from accounting adjustments and gains, Freddie Mac reported a second quarter profit of $821 million on a notable increase in revenues to $7.47 billion from last year's $1.59 billion.
Warren Buffett-owned Berkshire Hathaway (BRKA) reported a 14 percent increase in second quarter earnings, fueled by gains from derivatives trading, which soared to $1.53 billion from $453 million in the second quarter of last year.
The firm earned $1,147 per share, while Wall Street analysts expected the company to earn $1,238 per share for the quarter.
Microsoft (MSFT), which recently struck a ten-year deal with Yahoo (YHOO) to share search engine technology and ad revenue, announced an agreement with French ad company Publicis to sell its Razorfish digital advertising unit.
Meanwhile, McDonald's (MCD) announced that its global comparable sales rose 4.3 percent in July, benefiting from a 7.2 percent jump in sales in Europe. U.S. sales rose 2.6 percent primarily due to new products.
In the past few minutes, the major averages have bounced well off their lows for the young session, although they remain stuck in the red. The Dow is currently down 25.24 at 9,344.83, the Nasdaq is down 4.20 at 1,996.05 and the S&P 500 is down 3.83 at 1,006.65.
For comments and feedback: contact firstname.lastname@example.org