Major Averages Close Mixed Following Lackluster Session - U.S. Commentary

(RTTNews) - Stocks turned in a relatively lackluster performance during trading on Wednesday after trending higher over the past several sessions. The major averages spent the bulk of the session on opposite sides of the unchanged line before closing mixed.

While the Nasdaq rose 18.96 points or 0.4 percent to 5,294.58, the Dow dipped 54.92 points or 0.3 percent to 18,868.14 and the S&P 500 edged down 3.45 points or 0.2 percent to 2,176.94.

The choppy trading on Wall Street came as traders took a break after the Dow closed higher for the seventh straight session on Tuesday to reach another new record closing high.

Stocks have recently benefited from optimism about the impact of having Donald Trump in the White House, but lingering uncertainty about the President-elect's policies has led to some trepidation.

Traders were also reaction to a batch of economic data showing that conditions largely held steady ahead of last week's elections.

Before the start of trading, the Labor Department said its producer price index for final demand was unchanged in October after rising by 0.3 percent in September. Economists had expected another 0.3 percent increase.

Meanwhile, the report said core producer prices, which exclude food and energy prices, dipped by 0.2 percent in October after edging up by 0.2 percent in September. Core prices had been expected to rise by 0.2 percent.

A separate report from the Federal Reserve said industrial production was unchanged in October, with a steep drop in utilities output offsetting a jump in mining.

The Fed said industrial production came in flat in October after dropping by a revised 0.2 percent in September. Economists had expected production to match the 0.1 percent uptick originally reported for the previous month.

Additionally, the National Association of Home Builders said homebuilder confidence held steady in November, with most members responding before the elections.

Sector News

Biotechnology stocks came under pressure over the course of the trading session, dragging the NYSE Arca Biotechnology Index down by 2.4 percent. The index continued to give back ground after reaching its highest closing level in well over a month on Monday.

PDL BioPharma (PDLI) led the biotech sector lower after announcing a proposed $150 million public offering of new convertible senior notes due in 2021.

Considerable weakness was also visible among banking stocks, resulting in a 1.9 percent slump by the Dow Jones Banks Index. With the drop, the index pulled back off an eight-year closing high.

Within the banking sector, Fifth Third Bancorp (FITB), Capital One (COF), and Bank of America (BAC) posted notable losses after being downgraded by Baird.

Steel, gold, railroad, and housing stocks also saw significant weakness on the day, while strength among semiconductor and software stocks contributed to the gain posted by the tech-heavy Nasdaq.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Wednesday. Japan's Nikkei 225 Index jumped by 2.2 percent, while Hong Kong's Hang Seng Index dipped by 0.2 percent.

Meanwhile, the major European markets all moved to the downside on the day. While the U.K.'s FTSE 100 Index fell by 0.6 percent, the German DAX Index and the French CAC 40 Index slid by 0.7 percent and 0.8 percent, respectively.

In the bond market, treasuries turned higher over the course of the session after seeing initial weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.5 basis points to 2.223 percent.

Looking Ahead

Another batch of economic data may be in focus on Thursday, with traders likely to keep an eye on reports on consumer prices, housing starts, and weekly jobless claims.

Trading could also be impacted by reaction to remarks by Fed Chair Janet Yellen, who is due to testify about the economic outlook before Congress's Joint Economic Committee.

Networking giant Cisco (CSCO) is also release its quarterly results after the close of today's trading, while retail giant Wal-Mart (WMT) is due to report its results before the start of trading on Thursday.