Stocks Close Mixed But Nasdaq Extends Winning Streak - U.S. Commentary

(RTTNews) - After experiencing choppy trading throughout much of the two previous sessions, stocks turned in another lackluster performance during trading on Thursday. The major averages eventually ended the session mixed, although the tech-heavy Nasdaq closed higher for the seventh consecutive session.

While the Nasdaq rose 18.34 points or 0.4 percent to a nearly fifteen-year closing high of 4,924.70, the Dow slipped 44.08 points or 0.2 percent to 17,985.77 and the S&P 500 edged down 2.23 points or 0.1 percent to 2,097.45.

The mixed performance on Wall Street partly reflected uncertainty about the situation in Greece, as traders continued to keep a close eye on the ongoing debt negotiations.

While many traders remain optimistic a deal will eventually be reached, news that Germany rejected Greece's proposal to extend its loan agreement raised concerns the country could exit from the eurozone.

A notable decline by shares of Wal-Mart (WMT) weighed on the Dow, with the retail giant falling by 3.2 percent to a two-month closing low.

The loss by Wal-Mart came after the company reported better than expected fourth quarter earnings but provided disappointing guidance. The company also announced plans to boost wages for its employees.

In U.S. economic news, the Labor Department released a report before the start of trading showing that initial jobless claims pulled back by more than expected in the week ended February 14th.

The report said initial jobless claims fell to 283,000, a decrease of 21,000 from the previous week's unrevised level of 304,000. Economists had expected jobless claims to drop to 290,000.

Meanwhile, the Philadelphia Federal Reserve released a report showing that its index of regional manufacturing activity unexpectedly decreased for the third straight month in February.

The report said the diffusion index for current general activity fell to 5.2 in February from 6.3 in January, although a positive reading indicates a continued increase in regional manufacturing activity.

The modest decrease came as a surprise to economists, who had expected the Philly Fed index to climb to a reading of 9.0.

A separate report from the Conference Board showed that its index of leading U.S. economic indicators rose by slightly less than anticipated in January.

Sector News

Reflecting the relatively lackluster performance turned in by the broader markets, most of the major sectors ended the day showing only modest moves.

Gold stocks saw substantial weakness, however, with the NYSE Arca Gold Bugs Index tumbling by 2.4 percent. With the drop, the index ended the session at its lowest closing level in a month.

The weakness among gold stocks came despite an increase by the price of the precious metal, as gold for April delivery climbed $7.40 to $1,207.60 an ounce.

Considerable weakness was also visible among commercial real estate stocks, as reflected by the 2.2 percent loss posted by the Morgan Stanley REIT Index. LaSalle Hotel Properties (LHO) posted a notable loss after reporting slightly weaker than expected fourth quarter earnings.

While utilities stocks also showed a notable move to the downside, internet stocks turned in a strong performance on the day. The Dow Jones Internet Index surged up by 1.6 percent to its best closing level in over fourteen years.

Priceline (PCLN) helped to lead the internet sector higher, jumping 8.5 percent after reporting better than expected fourth quarter results and announcing a $3 billion share buyback program.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Thursday, with several markets closed for Lunar New Year holidays. Japan's Nikkei 225 Index rose by 0.4 percent, while Australia's All Ordinaries Index edged down by 0.1 percent.

The major European markets also ended the day mixed. While the U.K's FTSE 100 Index dipped by 0.1 percent, the German DAX Index rose by 0.4 percent and the French CAC 40 Index advanced by 0.7 percent.

In the bond market, treasuries moved notably lower, partly offsetting the rally seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.7 basis points to 2.113 percent.

Looking Ahead

Amid a quiet day on the U.S. economic front, trading on Friday may be driven by any developments regarding the Greek debt negotiations.