US equity indexes exhibited a mixed performance around midday on Monday as the market embarked on a holiday-shortened week. The S&P 500 edged up by 0.2% to 5,943.6 points. In contrast, the Nasdaq climbed 0.6% to reach 19,685.6, while the Dow Jones Industrial Average saw a dip of 0.3%, settling at 42,731.9. The leading sectors included communication services and technology, reflecting positive momentum and investor interest.
However, consumer staples emerged as the biggest decliner, suggesting a potential shift in consumer behaviors and market sentiment. In economic developments, the Chicago Federal Reserve Bank reported an increase in its monthly National Activity Index to a reading of minus 0.12 for November. This was anticipated in a survey compiled by Bloomberg, considering the previous month had a reading of minus 0.50.
Notably, the three-month moving average also saw a decline, falling to minus 0.31 from minus 0.27, indicating ongoing economic pressures. On the housing front, US new-home sales demonstrated resilience, accelerating to a seasonally adjusted annual rate of 664,000 units in November. This marks an increase from an upwardly revised rate of 627,000 in October, although it fell slightly short of the 670,000 units expected as per a Bloomberg survey.
Interestingly, this figure still represents an impressive 8.7% increase from November 2023. Regarding corporate announcements, Honda Motor and Nissan Motor disclosed on Monday that they have initiated a memorandum of understanding to explore the potential of a merger, aiming to establish a joint holding company.
Additionally, Honda and Nissan have signed a separate memorandum of understanding with Mitsubishi Motors, delving into Mitsubishi's potential participation and synergy sharing regarding the forthcoming business integration. As a result of these announcements, Honda's shares surged more than 10% around midday, indicating strong investor confidence in the prospective collaboration. In other company news, Xerox Holdings saw its shares rise by 6.8% following an announcement regarding its commitment to acquire Lexmark International from Ninestar, PAG Asia Capital, and Shanghai Shouda Investment Center.
The acquisition deal is valued at $1.5 billion, inclusive of assumed liabilities and is anticipated to finalize in the second half of 2025. In terms of yields, the US 10-year Treasury yield increased by 5.2 basis points, reaching 4.57%. Meanwhile, the two-year rate climbed 2.7 basis points to 4.34%.
The US Dollar Index also experienced a rise of 0.4%, reaching a level of 108.1, highlighting ongoing strength in the dollar amidst fluctuating market conditions. On the commodities front, West Texas Intermediate crude experienced a decline, falling by 1.1% to $68.72 per barrel. Gold prices dipped by 0.5%, settling at $2,631.20 per ounce, whereas silver saw a rise of 1%, trading at $30.27 per ounce..