Stocks Finish Choppy Trading Session Little Changed - U.S. Commentary

(RTTNews) - After ending the previous session modestly lower, stocks showed a lack of direction throughout the trading day on Tuesday. The major averages spent much of the session lingering near the unchanged line before closing mixed.

While the tech-heavy Nasdaq edged down 7.48 points or 0.2 percent to 4,888.31, the Dow inched up 13.08 points or 0.1 percent to 17,990.32 and the S&P 500 rose 3.91 points or 0.2 percent to 2,091.70.

The lackluster performance on Wall Street came as traders seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement on Wednesday.

While the Fed is widely expected to leave interest rates unchanged, traders are likely to keep a close eye on the accompanying statement for clues about the outlook for the next meeting in June.

Traders were also digesting the latest batch of U.S. economic news, including a report from the Conference Board showing a bigger than expected drop in consumer confidence in April.

The Conference Board said its consumer confidence index dropped to 94.2 in April from a revised 96.1 in March. Economists had expected the index to edge down to 96.0.

A separate report from the Commerce Department showed that durable goods orders rose by less than expected in March.

The Commerce Department said durable goods orders climbed by 0.8 percent in March after tumbling by a revised 3.1 percent in February. Orders had been expected to increase by 1.6 percent.

Excluding a jump in orders for transportation equipment, durable goods orders dipped by 0.2 percent in March after slumping by 1.3 percent in February.

The decrease in ex-transportation orders came as a surprise to economists, who had expected a 0.5 percent increase.

Standard & Poor's also released a report showing that the annual rate of home price growth in major metropolitan areas slowed by more than expected in February.

Sector News

Despite the lackluster performance by the broader markets, natural gas stocks showed a substantial move to the upside on the day, driving the NYSE Arca Natural Gas Index up by 2.9 percent. With the gain, the index reached a five-month closing high.

Ultra Petroleum (UPL) and Southwestern Energy (SWN) turned in two of the natural gas sector's best performances, jumping by 7.5 percent and 7.1 percent, respectively.

Considerable strength was also visible among steel stocks, which rebounded after falling sharply on Monday. The NYSE Arca Gold Bugs Index climbed by 2.1 percent after plunging by 4.5 percent in the previous session.

Gold stocks also saw significant strength, as reflected by the 1.8 percent gain posted by the NYSE Arca Gold Bugs Index. The strength in the sector came as gold for June delivery rose $3.20 to $1,243.40 an ounce.

Electronic storage, oil, trucking and semiconductor stocks also moved notably higher, while biotechnology stocks moved to the downside.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index fell by 0.5 percent, while Hong Kong's Hang Seng Index climbed by 0.5 percent.

The major European markets also finished the day mixed. While the U.K.'s FTSE 100 Index rose by 0.4 percent, the French CAC 40 Index and the German DAX Index both dropped by 0.3 percent.

In the bond market, treasuries moved moderately lower, extending a recent downward trend. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, increased 2.9 basis points to 1.931 percent.

Looking Ahead

The Fed announcement will be in the spotlight during trading on Wednesday, likely overshadowing a report on pending home sales.

On the earnings front, Apple (AAPL), AT&T (T), and eBay (EBAY) are among the companies releasing their quarterly results after the close of today's trading.

Boeing (BA), Comcast (CMCSA), Goodyear Tire (GT), and Hilton Hotels (HLT) are due to report their results before the start of trading on Wednesday.