US equity indexes traded mixed around midday Monday as the market started a holiday-shortened week.

The S&P 500 was up 0.2% at 5,943.6 and the Nasdaq rose 0.6% to 19,685.6, with the Dow Jones Industrial Average 0.3% lower at 42,731.9.

Communication services and technology led the gainers, while the consumer staples sector was the biggest decliner.

In economic news, the Chicago Federal Reserve Bank's monthly National Activity Index increased to a reading of minus 0.12 in November, as expected in a survey compiled by Bloomberg following a minus 0.50 reading in October. The three-month moving average still fell to minus 0.31 from minus 0.27.

US new-home sales accelerated to a 664,000 annual rate in November from an upwardly revised 627,000 rate in October, lower than the 670,000 rate expected in a survey compiled by Bloomberg. Home sales were still up 8.7% from November 2023.

In company news, Honda Motor (HMC) and Nissan Motor said Monday they have signed a memorandum of understanding to discuss the possibility of a merger and create a joint holding company. In a separate statement, Honda and Nissan signed a memorandum of understanding with Mitsubishi Motors to explore the possibility of Mitsubishi's participation, involvement and synergy sharing about the business integration. Shares of Honda advanced more than 10% around midday.

Xerox Holdings (XRX) shares rose 6.8% after the company said it has agreed to acquire Lexmark International from Ninestar, PAG Asia Capital, and Shanghai Shouda Investment Center for $1.5 billion, including assumed liabilities. The deal is expected to close in H2 2025.

The US 10-year Treasury yield rose 5.2 basis points to 4.57%. The two year-rate was up 2.7 basis points to 4.34%.

The US Dollar Index was up 0.4% to 108.1.

West Texas Intermediate crude fell 1.1% to $68.72 per barrel.

Gold was down 0.5% to $2,631.20 an ounce, and silver rose 1% to $30.27 per ounce.