Major Averages Close In Positive Territory But Well Off Early Highs

(RTTNews) - After showing a strong move to the upside in early trading on Thursday, stock gave back some ground as the day progressed but managed to close modestly higher. The slim gains came on the heels of yesterday's rally, with the major averages further offsetting their recent pullback.

Most of the major sectors ended the day showing only modest moves, although considerable strength was visible among railroad stocks.

Reflecting the strength in the railroad sector, the Dow Jones Railroads Index surged up by 1.7 percent, climbing further off the ten-month closing low set on Tuesday. CSX Corp. (CSX) helped to lead the way higher, climbing by 2.9 percent.

Biotechnology and trucking stocks also saw some strength on the day, although buying interest was relatively subdued.

On the other hand, gold stocks fell sharply on the day, dragging the NYSE Arca Gold Bugs Index down by 2.1 percent. With the drop, the index fell to a five-month closing low.

The weakness among gold stocks came amid a decrease by the price of the precious metal, with gold for August delivery falling $6.20 to $1,180.40 an ounce.

Oil service stocks also saw notable weakness, moving lower along with the price of crude oil. With crude for July delivery sliding $0.66 to $60.77 a barrel, the Philadelphia Oil Service Index dropped by 1.3 percent.

The major averages ended the day in positive territory but well off their highs for the session. The Dow edged up 38.97 points or 0.2 percent to 18,039.37, the Nasdaq inched up 5.82 points or 0.1 percent at 5,082.51 and the S&P 500 crept up 3.66 points or 0.2 percent to 2,108.86.