Major Averages Turning In Mixed Performance In Early Trading

(RTTNews) - After moving mostly lower over the course of the two previous sessions, stocks are turning in a lackluster performance in early trading on Thursday. The major averages are showing only modest moves, holding close to the unchanged line.

The choppy trading on Wall Street partly reflects a mixed reaction to the latest earnings news as the reporting season gets into full swing.

Shares of General Motors (GM) are moving sharply higher after the auto giant reported better than expected second quarter earnings. The company also said its second half will be even better than the first.

United Continental (UAL) is also turning in a strong performance after reporting second quarter results that matched estimates and announcing an additional $3 billion share repurchase program.

On the other hand, shares of American Express (AXP) have come under pressure after the credit card giant reported second quarter earnings that exceeded estimates but on revenues that came in below forecasts.

Despite the lack of direction being shown by he broader markets, substantial strength has emerged among oil service stocks. The Philadelphia Oil Service Index has surged up by 2.6 percent, bouncing off its worst closing level in almost five years.

The rebound by oil service stocks comes amid a modest increase by the price of crude oil, with crude for September delivery climbing $0.14 to $49.33 a barrel.

Semiconductor, computer hardware, and networking stocks are also seeing significant strength, helping to push the tech-heavy Nasdaq higher.

Meanwhile, railroad stocks are seeing considerable weakness, as reflected by the 2.9 percent drop by the Dow Jones Railroads Index. Union Pacific (UNP) is leading the sector lower after reporting weaker than expected second quarter revenues.

Gold, telecom, and utilities stocks have also moved to the downside on the day, offsetting the strength seen in the aforementioned sectors.

Currently, the major averages are turning in a mixed performance. While the Dow is down 16.74 points or 0.1 percent at 17,834.30, the Nasdaq is up 19.19 points or 0.4 percent at 5,190.96 and the S&P 500 is up 1.18 points or 0.1 percent at 2,115.33.