Stocks Close Mixed Ahead Of Key Economic Data - U.S. Commentary

(RTTNews) - After showing a notable move to the upside in early trading on Wednesday, stocks turned mixed over the course of the session. For the second straight day, the major averages closed on opposite sides of the unchanged line.

While the Dow and the S&P 500 managed to remain in positive territory, the tech-heavy Nasdaq slid into the red. The Nasdaq dipped 7.92 points or 0.2 percent to 3,931.95, while the Dow jumped 128.66 points or 0.8 percent to 15,746.88 and the S&P 500 rose 7.52 points or 0.4 percent to 1,770.49.

With the strong gain on the day, the Dow broke out of a recent trading range to reach a new record closing high.

The blue chip index benefited from a notably advance by shares of Microsoft (MSFT), which jumped 4.2 percent after Reuters reported the company has narrowed its list of external candidates to replace Chief Executive Steve Ballmer to about five people.

UnitedHealth (UNH), Chevron (CVX), and General Electric (GE) also posted notable gains, helping to lift the Dow firmly into positive territory.

The mixed performance by the broader Nasdaq and S&P 500 came as traders seemed somewhat reluctant to make any significant moves ahead of the release of some key economic data later this week.

Traders are likely to keep a close eye on the Commerce Department's report on third quarter GDP on Thursday and the Labor Department's October jobs report on Friday.

The reports could have a significant impact on the outlook for the Federal Reserve's stimulus program even though the jobs report is likely to be distorted by the government shutdown.

With the focus on those more closely watched reports, traders largely shrugged off a report from the Conference Board showing that its leading economic indicators index rose in line with estimates in September.

The Conference Board said its leading economic index rose by 0.7 percent in September following a matching increase in August.

Sector News

With Microsoft helping to lead the way higher, software stocks saw considerable strength on the day. The Dow Jones Software Index jumped 2.3 percent to reach its best levels since 2000.

Sapient (SAPE) and Symantec (SYMC) posted notable gains along with Microsoft, advancing by 3.6 percent and 2 percent, respectively.

Utilities stocks also showed a strong move to the upside, driving the Dow Jones Utilities Average up by 1.3 percent. With the gain, the index reached a three-month closing high.

While gold and brokerage stocks also saw significant strength, biotechnology stocks came under substantial selling pressure on the day.

Reflecting the weakness in the biotech sector, the NYSE Arca Biotechnology Index tumbled by 2.7 percent. InterMune (ITMN) helped lead the sector lower after pricing its public offering of 6.5 million shares of its common stock at a discount to Tuesday's closing price.

Trucking stocks also saw notable weakness over the course of the session, dragging the Dow Jones Trucking Index down by 1.6 percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Wednesday. Japan's Nikkei 225 Index advanced by 0.8 percent, while China's Shanghai Composite Index fell by 0.8 percent.

The major European markets also ended the day mixed. While the U.K.'s FTSE 100 Index edged down by 0.1 percent, the French CAC 40 Index ended the day up by 0.8 percent and the German DAX Index rose by 0.4 percent.

In the bond market, treasuries saw modest strength after ending the previous session notably lower. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2.2 basis points to 2.64 percent.

Looking Ahead

Trading on Thursday is likely to be impacted by reaction to the third quarter GDP report. Economists expect GDP to increase by about 2.0 percent in the third quarter compared to the 2.5 percent growth seen in the second quarter.

The Labor Department's weekly jobless claims report may also attract some attention ahead of the release of the more closely watched monthly report on Friday.

On the earnings front, Activision Blizzard (ATVI), CBS (CBS), Qualcomm (QCOM), and Whole Foods (WFM) are among the companies reporting their quarterly results after the close of today's trading.

Twitter (TWTR) is also likely to be in focus on Thursday, as the social media giant is due to begin trading on the New York Stock Exchange.