Major Averages Lingering Near The Unchanged Line In Early Trading

(RTTNews) - With traders keeping an eye on developments overseas, stocks are turning in a lackluster performance in early trading on Friday. The major averages have been bouncing back and forth across the unchanged line, unable to sustain any significant moves.

The choppy trading comes as traders weigh optimism about a potential de-escalation of the crisis in eastern Ukraine against a potential escalation of the conflict in Iraq.

While the secretary of the Russian Security Council told news agency RIA Novosti that Russia is ready to mediate talks between the Ukrainian government and pro-Russian separatists, U.S. President Barack Obama authorized U.S. airstrikes against Islamic militants in northern Iraq.

On the economic front, the Labor Department released a report showing that U.S. labor productivity increased by more than anticipated in the second quarter, contributing to a smaller than expected increase in labor costs.

Most of the major sectors are showing only modest moves in early trading, although considerable strength has emerged among gold stocks. The NYSE Arca Gold Bugs Index has risen by 1.1 percent, reaching its best intraday level in almost a month.

Housing and utilities stocks are also seeing early strength, while weakness is visible among tobacco and airline stocks.

Currently, the major averages are posting modest gains. The Dow is up 11.04 points or 0.1 percent at 16,379.31, the Nasdaq is up 2.37 points or 0.1 percent at 4,337.33 and the S&P 500 is up 2.00 points or 0.1 percent at 1.911.57.