Stocks Seeing Modest Weakness In Mid-Day Trading - U.S. Commentary

(RTTNews) - After initially showing a lack of direction, stocks have moved modestly lower over the course of the trading session on Friday. Selling pressure has remained relatively subdued, however, limiting the downside for the markets.

Currently, the major averages remain in the red but off their lows of the session. The Dow is down 34.17 points or 0.2 percent at 18,869.65, the Nasdaq is down 13.67 points or 0.3 percent at 5,320.31 and the S&P 500 is down 5.52 points or 0.3 percent at 2,181.60.

Profit taking may be contributing to the modest weakness on Wall Street after the major averages ended the previous session within striking distance of new record closing highs.

Nonetheless, traders seem somewhat reluctant to make more significant moves amid a relatively quiet day on the U.S. economic front.

The Conference Board released a report showing a slight increase by its index of leading economic indicators, although the data does not typically impact the markets.

The report said the leading economic index crept up by 0.1 percent in October after edging up by 0.2 percent in September. The uptick by the index matched economist estimates.

"Although its six-month growth rate has moderated, the index still suggests that the economy will continue expanding into early 2017," said Ataman Ozyildirim, Director of Business Cycles and Growth Research at the Conference Board.

Among individual stocks, shares of Abercrombie & Fitch (ANF) have come under pressure after the apparel retailer reported third quarter results that came in below analyst estimates.

Gap (GPS) is also seeing notable weakness after reporting lower third quarter earnings and sales and forecasting full-year earnings below analyst estimates.

On the other hand, shares of Marvell Technology (MRVL) are moving sharply higher after the chip maker reported better than expected third quarter results and announced a $1 billion stock buyback.

Sector News

Gold stocks have shown a significant move to the downside on the day, dragging the NYSE Arca Gold Bugs Index down by 1.6 percent.

The weakness among gold stocks comes amid a decrease by the price of the precious metal, with gold for December delivery sliding $10 to a nine-month low of $1,206.90 an ounce.

Considerable weakness is also visible among steel stocks, as reflected by the 1.5 percent drop by the NYSE Arca Steel Index. The index is pulling back further off the nearly two-year closing high set on Monday.

Biotechnology and pharmaceutical stocks are also seeing notable weakness in mid-day trading, while some strength is visible among oil service stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index advanced by 0.6 percent, while Hong Kong's Hang Seng Index rose by 0.4 percent.

Meanwhile, the major European markets moved to the downside on the day. While the French CAC 40 Index fell by 0.5 percent, the U.K.'s FTSE 100 Index and the German DAX Index dipped by 0.3 percent and 0.2 percent, respectively.

In the bond market, treasuries are extending the downward trend seen over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 5 basis points at 2.326 percent.