Stocks Close Slightly Lower Following Quiet Trading Day - U.S. Commentary

(RTTNews) - Stocks showed a lack of direction throughout much of the trading day on Friday before ending the session modestly lower.

The major averages moved roughly sideways going into the close, finishing the day in the red. The Dow edged down 1.47 points or less than a tenth of a percent to 16,478.41, the Nasdaq fell 10.59 points or 0.3 percent to 4,156.59 and the S&P 500 slipped 0.62 points or less than a tenth of a percent to 1,841.40.

Despite the slim losses on the day, the major averages all moved higher for the week. The Dow jumped by 1.6 percent, while the Nasdaq and the S&P 500 both advanced by 1.3 percent.

The choppy trading seen for most of the day came as many traders remained away from their desks following the Christmas Day holiday on Wednesday.

A lack of major U.S. economic data also kept some traders on the sidelines following the recent string of upbeat economic reports.

While some traders looked to cash in on the recent strength in the markets, most seemed reluctant to make any significant moves.

Most of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets.

Airline stocks saw considerable weakness, however, with the NYSE Arca Airline Index falling by 1.5 percent. Industry giants American Airlines (AAL) and United Continental (UAL) turned in two of the sector's worst performances.

Meanwhile, significant strength was visible among steel stocks, as reflected by the 1.7 percent gain posted by the NYSE Arca Steel Index. With the gain, the index reached its best closing level in over ten months.

Networking, telecom, and gold stocks also saw some strength on the day, although buying interest remained relatively subdued.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index closed just above the unchanged line, while Hong Kong's Hang Seng Index rose by 0.3 percent.

The major European markets also moved to the upside on the day. While the U.K.'s FTSE 100 Index advanced by 0.9 percent, the German DAX Index and the French CAC 40 Index jumped by 1.1 percent and 1.4 percent, respectively.

In the bond market, treasuries moved modestly lower, extending the downward trend seen over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 1.6 basis points to 3.006 percent.

Next week's trading could be impacted by the release of reports on consumer confidence, manufacturing activity, and construction spending, although some traders may remain on the sidelines amid the New Year's Day holiday.