Stocks Continue To Experience Choppy Trading - U.S. Commentary

(RTTNews) - Stocks have shown a lack of direction over the course of the trading session on Thursday after failing to sustain an initial upward move. The major averages have spent the day bouncing back and forth across the unchanged line.

Currently, the major averages are posting modest losses on the day. The Dow is down 25.73 points or 0.1 percent at 17,876.78, the Nasdaq is down 8.62 points or 0.2 percent at 4,942.20 and the S&P 500 is down 1.56 points or 0.1 percent at 2,080.34.

The choppy trading on Wall Street comes as traders continue to digest the minutes of the latest Federal Reserve meeting released Wednesday afternoon.

The minutes showed that Fed officials were divided about when to begin raising interest rates, with some calling for a rate hike in June even as others suggested waiting until next year.

Uncertainty about the outlook for interest rates may increase the focus on economic data in the weeks leading up to the next Fed meeting.

The Labor Department released a report before the start of trading showing a rebound in initial jobless claims in the week ended April 4th, although the less volatile four-week moving average dropped to a nearly fifteen-year low.

The report said initial jobless claims climbed to 281,000 falling to a two-month low of 267,000 in the previous week. Economists had expected jobless claims to rise to 285,000.

Meanwhile, the Labor Department also said the less volatile four-week moving average edged down to 282,250, a decrease of 3,000 from the previous week's revised average of 285,250.

The modest drop pulled the four-week moving average down to its lowest level since hitting 281,500 in June of 2000.

On the earnings front, shares of Alcoa (AA) are moving lower after the aluminum giant reported first quarter earnings that beat analyst estimates but on weaker than expected revenues.

Housewares retailer Bed Bath & Beyond (BBBY) is also under pressure after reporting fourth quarter earnings that met estimates but providing disappointing guidance.

Meanwhile, shares of Apogee Enterprises (APOG) have moved to the upside after the glass products company reported better than expected fourth quarter results.

Sector News

Many of the major sectors are showing only modest moves on the day, contributing to the lackluster performance being shown by the broader markets.

Commercial real estate stocks are seeing considerable weakness, however, with the Morgan Stanley REIT Index falling by 1.7 percent. One Liberty Properties (OLP) and Ramco-Gershenson Properties Trust (RPT) are posting notable losses.

Significant weakness has also emerged among housing stocks, as reflected by the 1.2 percent loss being posted by the Philadelphia Housing Sector Index. The weakness in the sector partly reflects negative comments from JP Morgan.

On the other hand, oil service stocks continue to turn in a strong performance on the day, driving the Philadelphia Oil Service Index up by 2.6 percent. The gains by oil service stocks come as crude for May delivery is climbing $0.66 to $51.08 a barrel.

Telecom and natural gas stocks are also seeing notable strength, partly offsetting the weakness seen in the aforementioned sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region ended Thursday's trading mixed. While Japan's Nikkei 225 Index advanced by 0.8 percent and Hong Kong's Hang Seng Index soared by 2.7 percent, China's Shanghai Composite Index slumped by 0.9 percent.

Meanwhile, the major European markets all moved notably higher on the day. The French CAC 40 Index surged up by 1.4 percent, while the U.K.'s FTSE 100 Index and the German DAX Index both jumped by 1.1 percent.

In the bond market, treasuries have moved moderately lower after ending the previous session roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.5 basis points at 1.92 percent.