Major Averages Close Mixed Following Choppy Trading Day - U.S. Commentary

(RTTNews) - Stocks showed a lack of direction during trading on Friday following the substantial rebound seen over the course of the previous session. The major averages spent much of the day bouncing back and forth across the unchanged line before ending the session mixed.

While the tech-heavy Nasdaq slipped 11.16 points or 0.2 percent to 7,247.87, the Dow climbed 123.95 points or 0.5 percent to 25,413.22 and the S&P 500 rose 6.07 points or 0.2 percent to 2,736.27.

For the week, the major averages all posted steep losses. While the Dow plunged by 2.2 percent, the Nasdaq tumbled by 2.1 percent and the S&P 500 slumped by 1.6 percent.

The choppy trading on Wall Street came as traders seemed reluctant to make more significant moves amid lingering uncertainty about the global economic outlook and renewed anxiety about Brexit.

Buying interest was generated in mid-day trading, as President Donald Trump told reporters China "wants to make a deal" on trade.

Trump said China has provided a "large list" of trade items the communist country is willing to compromise on but argued any trade deal has to be "reciprocal."

The comments generated optimism about a U.S.-China trade deal, although White House officials subsequently told CNBC people should not read too much into the president's claims.

Meanwhile, traders largely shrugged off a report from the Fed showing a slight uptick in industrial production in the month of October.

The Fed said industrial production inched up by 0.1 percent in October after rising by a downwardly revised 0.2 percent in September.

Economists had expected industrial production to rise by 0.2 percent compared to the 0.3 percent increase originally reported for the previous month.

Sector News

Utilities stocks rebounded strongly from recent weakness, with the Dow Jones Utility Average jumping by 2 percent after ending the previous session at its lowest closing level in well over a month.

PG&E (PCG) posted a standout gain after California Public Utilities Commission President Michael Picker reportedly told Wall Street analysts he could not imagine allowing the utility company to go bankrupt.

Significant strength also emerged among housing stocks, as reflected by the 1.4 percent advance by the Philadelphia Housing Sector Index.

Gold, biotechnology, and commercial real estate stocks also saw considerable strength on the day, while notable weakness remained visible among semiconductor stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Friday. Japan's Nikkei 225 Index fell by 0.6 percent, while Hong Kong's Hang Seng Index rose by 0.3 percent.

Meanwhile, the major European markets all moved to the downside on the day. While the German DAX Index edged down by 0.2 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index dipped by 0.2 percent and 0.3 percent, respectively.

In the bond market, treasuries moved notably higher after ending the previous session roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dropped by 4.4 basis points to 3.074 percent.

Looking Ahead

Next week's trading may be somewhat subdued due to the Thanksgiving Day holiday on Thursday, although reports on housing starts, durable goods orders, and existing home sales are still likely to attract attention.

Trading may also be impacted by reaction to earnings news from companies like Intuit (INTU), Urban Outfitters (URBN), Best Buy (BBY), Lowe's (LOW), Target (TGT), Gap (GPS), and Deere & Co. (DE).