Stocks Showing Modest Move To The Upside - U.S. Commentary

(RTTNews) - While buying interest has remained relatively subdued, stocks have moved mostly higher over the course of the trading session on Friday. The gains on the day have partly offset the pullback that was seen in the previous session.

The major averages have seen some further upside in recent trading, reaching new highs for the session. The Dow is up 25.07 points or 0.1 percent at 18,542.30, the Nasdaq is up 25.12 points or 0.5 percent at 5,099.02 and the S&P 500 is up 6.76 points or 0.3 percent at 2,171.93.

The strength on the day comes as traders react positively to some of the latest corporate results as the earnings season rolls on.

Nonetheless, trading activity has remained relatively light amid the lack of major U.S. economic data due to be released on the day.

Traders may also be looking ahead to the Federal Reserve's two-day monetary policy meeting scheduled for next week.

The Fed is widely expected to leave interest rates unchanged as officials wait to see the fallout from Britain's vote to leave the European Union.

The central bank's accompanying statement is still likely to be in focus, as investors attempt to gauge the outlook for the next rate hike.

Among individual stocks, shares of Advanced Micro Devices (AMD) have moved sharply higher after the chipmaker returned to non-GAAP operating profitability in the second quarter on its first increase in sales in nearly two years.

Online radio service Pandora Media (P) is also turning in a strong performance on the day after reporting a narrower than expected second quarter loss.

Meanwhile, shares of Skechers (SKX) are under pressure after the shoemaker reported weaker than expected second quarter earnings and revenues.

Sector News

While most of the major sectors are showing only modest moves, trucking stocks are seeing significant strength in mid-day trading. Reflecting the strength in the sector, the Dow Jones Trucking Index is up by 2 percent.

Swift Transportation (SWFT) is leading the trucking sector higher after reporting better than expected second quarter earnings and revenues.

Considerable strength is also visible among telecom stocks, as reflected by the 1.6 percent gain being posted by the NYSE Arca Telecom Index. With the gain, the index has reached its best intraday level in over a year.

On the other hand, oil service stocks have come under pressure on the day, dragging the Philadelphia Oil Service Index down by 1.2 percent. The drop extends the downtrend shown by the index over the past couple weeks.

A decrease by the price of crude oil is weighing on the oil service sector, with crude for September delivery sliding $0.79 to $43.96 a barrel.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index tumbled by 1.1 percent, while Hong Kong's Hang Seng Index edged down by 0.2 percent.

Meanwhile, the major European markets turned in a mixed performance on the day. While the German DAX Index edged down by 0.1 percent, the French CAC 40 Index inched up by 0.1 percent and the U.K.'s FTSE 100 Index advanced by 0.5 percent.

In the bond market, treasuries have climbed back near the unchanged line after seeing early weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 1.563 percent.