Stocks Give Back Ground After Moving Higher At The Open - U.S. Commentary

(RTTNews) - While stocks moved higher at the start of trading on Friday, buying interest waned not long after the open. The major averages have subsequently pulled back off their highs for the young session, with the Nasdaq sliding into negative territory.

Currently, the major averages are turning in a mixed performance, with the Nasdaq in the red. The Nasdaq is down 14.54 points or 0.3 percent at 4,304.74, the Dow is up 64.39 points or 0.4 percent at 16,395.44 and the S&P 500 is up 6.39 points or 0.3 percent at 1,878.40.

The choppy trading on Wall Street comes as traders continue to weigh yesterday's upbeat economic data against worries about the outlook for monetary policy.

The data released on Wednesday provided some signs that the economy is poised to break out of the winter doldrums, reinforcing the view that the weather-related slowdown was only temporary.

Traders reacted positively to a report from the Conference Board showing a bigger than expected increase by its index of leading economic indicators as well as a report from the Philadelphia Federal Reserve showing a significant turnaround by regional manufacturing activity.

At the same time, concerns that the Fed may begin raising interest rate sooner than previously anticipated continue to weigh on the markets.

New Fed Chair Janet Yellen's remarks in her post-meeting press conference on Wednesday seemed to suggest that the central bank could begin raising rates by mid-2015.

While the mid-2015 guidance is in line with the forecasts of many economists, traders will still need to come to terms with the reality that the Fed's easy monetary policy will not last forever.

Most of the major sectors are showing only modest moves, although considerable strength is visible among utilities stocks. Reflecting the strength in the sector, the Dow Jones Utilities Average has advanced by 1.2 percent.

Oil service and steel stocks are also moving to the upside in early trading, while significant weakness has emerged among biotechnology stocks.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Hong Kong's Hang Seng Index advanced by 1.2 percent, while China's Shanghai Composite Index surged up by 2.7 percent. The Japanese markets were closed for a public holiday.

The major European markets are seeing modest strength on the day. While the German DAX Index has risen by 0.3 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index are both up by 0.1 percent.

In the bond market, treasuries continue to show a lack of direction after ending the previous session nearly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is unchanged at 2.775 percent.