Stocks Turn Mixed Amid Focus On Greek Negotiations - U.S. Commentary

(RTTNews) - Stocks have turned mixed over the course of the trading day on Friday as traders keep a close eye on developments regarding Greece. The Dow has moved notably higher, but the Nasdaq is pulling back further off its record highs.

Currently, the major averages remain on opposite sides of the unchanged line. While the Nasdaq is down 23.56 points or 0.5 percent at 5,088.63, the Dow is up 72.67 points or 0.4 percent at 17,963.03 and the S&P 500 is up 0.74 points or less than a tenth of a percent at 2,103.05.

The lackluster performance on Wall Street comes as traders continue to focus on the situation in Greece, as the debt-laden country and its creditors continue to struggle to reach an agreement.

The latest reports suggest Greece plans to reject a 15.5 billion euro bailout extension due to concerns about the tough conditions demanded in return.

European finance ministers are scheduled to meet again on Saturday to continue the negotiations, with German Chancellor Angela Merkel saying the weekend's talks will be "decisive."

Merkel told reporters early Friday that European leaders "agreed that everything must be done to find a solution on Saturday."

The last-ditch attempt to reach an agreement comes as Greece has warned that it will be unable to make a 1.6 billion euro payment to the International Monetary Fund at the end of the month without further aid.

Amid the focus on Greece, traders have largely shrugged off a report from the University of Michigan showing that U.S. consumer sentiment has improved by even more than previously estimated in June.

The report said the consumer sentiment index for June was upwardly revised to 96.1 from the mid-month reading of 94.6.

Economists had expected the index to be unrevised from the preliminary reading, which was already up sharply from the final May reading of 90.7.

Meanwhile, the strong gain being posted by the Dow largely reflects a sharp jump by shares of Nike (NKE), which are up by 4.3 percent after the athletic shoe and apparel maker reported better than expected fourth quarter results.

Sector News

Most of the major sectors are showing only modest moves, although notable weakness is visible among semiconductor stocks. Reflecting the weakness in the sector, the Philadelphia Semiconductor Index is down by 1.9 percent.

Chip maker Micron Technology (MU) is leading the semiconductor sector lower after reporting weaker than expected third quarter results and providing disappointing guidance.

Networking and computer hardware stocks have also come under pressure on the day, contributing to the continued pullback by the tech-heavy Nasdaq.

Meanwhile, tobacco, brokerage, and commercial real estate stocks are seeing some strength, helping to offset the weakness seen in the aforementioned sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Friday, with China's Shanghai Composite Index showing a particularly steep 7.4 percent drop. Hong Kong's Hang Seng Index tumbled by 1.8 percent, while Japan's Nikkei 225 Index fell by 0.3 percent.

Meanwhile, the major European markets turned in a mixed performance. While the U.K.'s FTSE 100 Index slumped by 0.8 percent, the German DAX Index edged up by 0.2 percent and the French CAC 40 Index rose by 0.4 percent.

In the bond market, treasuries have shown a significant move to the downside on the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, has jumped 7.6 basis points to 2.469 percent.