Stocks Mostly Higher Amid Quiet Trading Day - U.S. Commentary

(RTTNews) - While trading activity has remained somewhat subdued, stocks have moved mostly higher during trading on Friday. The markets are extending the upward move seen in the previous session, with the S&P 500 reaching a new record intraday high.

Despite the moderate strength in the markets, the tech-heavy Nasdaq is posting a modest loss. The Nasdaq is down 4.18 points or 0.1 percent at 4,315.10, while the Dow is up 91.16 points or 0.6 percent at 16,422.21 and the S&P 500 is up 8.61 points or 0.5 percent at 1,880.62.

The strength on Wall Street comes as the recent batch of U.S. data has generated optimism that the economy is poised to break out of the winter doldrums.

On Thursday, 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.

The positive sentiment seems to have carried over into today's trading, overshadowing concerns that the Fed may begin raising interest rate sooner than previously anticipated.

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 still need to come to terms with the reality that the Fed's easy monetary policy will not last forever.

Meanwhile, Minneapolis Fed Narayana Kocherlakota released a statement this morning explaining his dissenting vote at Wednesday's Fed meeting.

Kocherlakota said he wanted the Fed's statement to include language indicating that the central bank would keep rates at near-zero levels at least until the unemployment rate has fallen below 5.5 percent.

Sector News

Oil service stocks are seeing significant strength in mid-day trading, with the Philadelphia Oil Service Index rising by 1.6 percent. With the gain, the index has reached a four-month intraday high.

The strength among oil service stocks amid a notable increase by the price of crude oil, as crude for May delivery is climbing $1.14 to $100.04 a barrel.

Considerable strength also remains visible among utilities stocks, as reflected by the 1.5 percent gain being posted by the Dow Jones Utilities Average. Exelon (EXC) has helped to lead the sector higher following an upgrade by Credit Suisse.

Steel, commercial real estate and computer hardware stocks have also shown strong moves to the upside, while biotechnology stocks have come under pressure on the day.

Other Markets

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 have also moved to the upside on the day. While the German DAX Index has risen by 0.8 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are up by 0.5 percent and 0.4 percent, respectively.

In the bond market, treasuries have moved modestly higher after ending the previous session nearly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.1 basis points at 2.764 percent.