Major Averages Posting Modest Gains In Early Trading

(RTTNews) - Stocks are turning in a lackluster performance in early trading on Friday following the rally seen over the course of the previous session. The major averages have been bouncing back and forth across the unchanged line.

The choppy trading on Wall Street partly reflects uncertainty about the near-term outlook for the markets on the heels of the volatility seen over the past several weeks.

While stocks sold off sharply in mid-August amid concerns about developing economies and the outlook for U.S. interest rates, the markets have shown a notable recovery since then.

Traders are also digesting the latest U.S. economic data, with today's reports showing mixed readings on industrial production and consumer sentiment.

The Federal Reserve released a report showing a modest drop in industrial production in September, while the University of Michigan said its consumer sentiment index rebounded more than expected in October.

Most of the major sectors are showing only modest moves, although notable weakness has emerged among oil service stocks. Reflecting the weakness in the oil service sector, the Philadelphia Oil Service Index is down by 3.1 percent.

Within the oil service sector, Schlumberger (SLB) is posting a notable loss after reporting weaker than expected third quarter revenues.

Steel, airline, and railroad stocks are also seeing early weakness, while notable strength is visible among tobacco stocks.

Currently, the major averages are posting modest gains on the day. The Dow is up 14.53 points or 0.1 percent at 17,156.28, the Nasdaq is up 7.48 points or 0.2 percent at 4,877.58 and the S&P 500 is up 2.70 points or 0.1 percent at 2,026.56.