Stocks seesawed Monday after opening lower, moving into the green at midday and eventually closing in the red, with the energy sector one of the few gainers on higher oil prices.

Crude oil is at a seven-year high in the U.S. after crossing in the $80 line in what has been a strong rally over several months.

Global shortages are largely being blamed for the move higher in prices. 

The U.S. 10-year yield was higher in a sign that investors expect strong economic growth to lead the Fed to hike interest rates sometime in the future. European and Asian markets were mixed.

Headlines over the weekend noted that Southwest Airlines, the world’s largest low-cost carrier, canceled more than 1,500 flights, or 27 percent of its daily flight volume.

Southwest blamed weather, staffing shortages, and flight control hiccups. This event highlights the continued capacity constraints faced by companies across the country. 

Consumer demand is growing for goods and services as the economy fully reopens, but labor shortages and supply-chain bottlenecks have been more persistent than many economists originally thought. 

Europe is facing similar issues which can be seen from its skyrocketing natural gas prices, as global supply has been slow to ramp up. These shortages will likely drive further inflation for global economies and is a likely contributor to rising Treasury yields.

Economic news will be light today, but this week will see job openings, consumer price inflation, retail sales growth and consumer sentiment data being released.

With Democrats and Republicans passing a stop-gap measure to keep the government open temporarily and avoiding a default, market focus has shifted back to the pace of economic recovery, in our view, and the possibility of another federal spending bill being passed.

We expect more volatility ahead as monetary policy evolves in a challenging environment.

10-year Treasury yields are trading at 1.61 percent higher.

The price of crude oil was up $1.10  at $80.45 and the spot price of gold was down $3 to $1,754.60.

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