Stocks Pull Back In Late Trading To Close Mixed - U.S. Commentary

(RTTNews) - After seeing modest strength throughout much of the session, stocks gave back ground into the close of trading on Wednesday. While the Nasdaq managed to hold on to a moderate gain, the Dow and the S&P 500 closed nearly flat.

The Nasdaq climbed 13.33 points or 0.3 percent to 5,116.14 and the Dow inched up by 1.20 points or less than a tenth of a percent to 17,813.39, while the S&P 500 edged down 0.27 points or less than a tenth of a percent to 2,088.87.

The strength seen for most of the day came following the release of several key U.S. economic reports, including a Labor Department report showing that initial jobless claims fell by more than expected in the week ended November 21st.

The Labor Department said jobless claims fell to 260,000, a decrease of 12,000 from the previous week's revised level of 272,000. Economists had expected jobless claims to edge down to 270,000.

A separate report from the Commerce Department showed that new orders for manufactured durable goods increased by much more than expected in the month of October.

Durable goods orders surged up by 3.0 percent in October after falling by a revised 0.8 percent in September. Economists had expected orders to increase by 1.5 percent.

Excluding a jump in orders for transportation equipment, durable goods orders rose by just 0.5 percent in October compared to the 0.1 percent dip seen in September.

The Commerce Department also released a report showing that new home sales rebounded strongly in October after pulling back sharply in the previous month.

The report said new home sales jumped 10.7 percent to an annual rate of 495,000 in October after slumping 12.9 percent to a revised 447,000 in September.

While a third report from the Commerce Department showed that personal income rose in line with estimates in the month of October, personal spending increased less than expected.

The University of Michigan also released a report showing that consumer sentiment in November improved by less than previously estimated.

Nonetheless, overall trading activity was relatively subdued, as some traders were away from their desks ahead of the Thanksgiving Day holiday on Thursday.

Sector News

Most of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets.

Biotechnology stocks showed a strong move to the upside on the day, however, driving the NYSE Arca Biotechnology Index up by 1.2 percent. With the gain, the index ended the session at its best closing level in two months.

Agios Pharmaceuticals (AGIO) helped to lead the biotech sector higher, with the biopharmaceutical company jumping by 8.3 percent.

Electronic storage and retail stocks also saw some strength, while considerable weakness emerged among steel stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan's Nikkei 225 Index and Hong Kong's Hang Seng Index both finished the day down by 0.4 percent.

Meanwhile, the major European markets rebounded following the weakness seen on Tuesday. While the U.K.'s FTSE 100 Index advanced by 1 percent, the French CAC 40 Index surged up by 1.5 percent and the German DAX Index soared by 2.2 percent.

In the bond market, treasuries closed modestly higher on the heels of the slew of economic data. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.1 basis points to 2.232 percent.

Looking Ahead

Following the Thanksgiving Day holiday on Thursday, trading activity is likely to be relatively subdued on Friday amid a lack of major U.S. economic data.