Mixed Overseas News Leads To Choppy Trading On Wall Street - U.S. Commentary

(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.

Currently, the major averages are turning in a mixed performance. While the Nasdaq is down 1.28 points or less than a tenth of a percent at 4,333.68, the Dow is up 13.61 points or 0.1 percent at 16,381.88 and the S&P 500 is up 1.73 points or 0.1 percent at 1,911.30.

The choppy trading on Wall Street 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.

Some positive sentiment was generated by news that Nikolai Patrushev, 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.

"We are interested in peace in Ukraine and in bringing the sides to the negotiating table so that they could settle their disputes," Patrushev told RIA in an interview. "Russia will continue to make every effort for the soonest de-escalation of tensions."

He added, "As for mediation, of course, we are ready to assist in the process of the discussion and we have said so on numerous occasions."

However, the upbeat news out of Russia has been partly offset by concerns generated by news that President Barack Obama authorized U.S. airstrikes against Islamic militants in northern Iraq in an effort to protect American interests and personnel in the region.

In a brief nationally televised speech Thursday evening, Obama said that U.S. action - taken at the request of the Iraqi government - will also include what he called humanitarian relief in the face of genocide.

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

The report said labor productivity climbed by 2.5 percent in the second quarter compared to economist estimate for an increase of 1.5 percent.

The Labor Department also said unit labor costs edged up by 0.6 percent in the second quarter, well below the 1.4 percent growth expected by economists.

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.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index plunged by 3 percent, while Hong Kong's Hang Seng Index dipped by 0.3 percent.

The major European markets have also moved to the downside on the day. While the French CAC 40 Index has fallen by 0.3 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both down by 0.6 percent.

In the bond market, treasuries have moved notably higher, extending a recent upward trend. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4 basis points at 2.384 percent.