Stocks Continue To Turn In A Lackluster Performance - U.S. Commentary

(RTTNews) - After moving substantially higher over the course of the previous session, stocks have shown a lack of direction during trading on Thursday. The major averages have spent much of the trading day lingering near the unchanged line.

Currently, the major averages are turning in a mixed performance. While the Nasdaq is up 3.19 points or 0.1 percent at 5,078.39, the Dow is down 18.50 points or 0.1 percent at 17,718.66 and the S&P 500 is down 3.65 points or 0.2 percent at 2,079.93.

The choppy trading on Wall Street comes as traders are taking a breather on the heels of the volatility seen in recent sessions.

The rally seen on Wednesday extended the strong upward move seen on Monday, nearly offsetting the sharp pullback seen last week.

Traders are also digesting the latest batch of U.S. economic news, including a report from the Labor Department showing a modest drop in initial jobless claims in the week ended November 14th.

The report said initial jobless claims edged down to 271,000, a decrease of 5,000 from the previous week's unrevised level of 276,000. Economists had expected jobless claims to dip to 270,000.

A separate report from the Philadelphia Federal Reserve said regional manufacturing conditions have seen a slight improvement in the month of November.

The Philly Fed said its diffusion index for current activity rose to a positive 1.9 in November from a negative 4.5 in October.

The positive reading indicated growth in regional manufacturing activity after two months of contraction. The index had been expected to rise to a negative 0.5.

Additionally, the Conference Board released a report showing a slightly bigger than expected increase by its index of leading economic indicators in the month of October.

The Conference Board said its leading economic index climbed by 0.6 percent in October after edging down by a revised 0.1 percent in September. Economists had expected the index to rise by 0.5 percent.

Sector News

Many of the major sectors are showing only modest moves, contributing to the lack of direction being shown by the broader markets.

Gold stocks are seeing significant strength, however, with the NYSE Arca Gold Bugs Index surging up by 3.2 percent. The strength in the sector comes as gold for December delivery is climbing $13.30 to $1,182 an ounce.

Airline and software stocks are also turning in strong performances, driving the NYSE Arca Airline Index and the Dow Jones Software Index up by 1.6 percent and 1.1 percent, respectively.

On the other hand, oil service stocks have come under pressure on the day, dragging the Philadelphia Oil Service Index down by 2.6 percent. The weakness in the sector comes as crude oil for December delivery is sliding $0.54 to $40.21 a barrel.

Biotechnology, healthcare, and electronic storage stocks have also moved to the downside, offsetting the strength seen in the aforementioned sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved notably higher on Thursday on the heels of the overnight rally on Wall Street. Japan's Nikkei 225 Index surged up by 1.1 percent, while Hong Kong's Hang Seng Index jumped by 1.4 percent.

The major European markets also moved to the upside on the day. While the German DAX Index shot up by 1.1 percent, the U.K.'s FTSE 100 Index advanced by 0.8 percent and the French CAC 40 Index edged up by 0.2 percent.

In the bond market, treasuries have moved higher after ending the previous session little changed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.1 basis points at 2.238 percent.