Stocks Showing A Lack Of Direction After Recent Volatility - U.S. Commentary

(RTTNews) - After seeing substantial volatility over the past several days, 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.

Currently, the major averages are posting modest losses on the day. The Dow is down 38.32 points or 0.2 percent at 16,616.45, the Nasdaq is down 1.89 points or less than 0.1 percent at 4,810.82 and the S&P 500 is down 1.29 points or 0.1 percent at 1,986.37.

The choppy trading on Wall Street comes as traders have moved to the sidelines following the big swings seen in recent sessions.

Stocks moved sharply higher over the two previous sessions, although the strong rebound came on the heels of a steep decline in the six preceding sessions.

Traders have largely shrugged off the latest batch of U.S. economic data, including a report from the Commerce Department showing that personal income increased in line with economist estimates in the month of July.

The report said personal income rose by 0.4 percent, matching the increases seen in the three previous months as well as the consensus estimate.

The Commerce Department also said personal spending increased by 0.3 percent for the second consecutive month. Economists had expected spending to climb by 0.4 percent.

A separate report from the University of Michigan showed an unexpected downward revision to its consumer sentiment index for August.

The report said the final reading on the consumer sentiment index for August came in at 91.9 compared to the preliminary reading of 92.9, with the downward revision likely reflecting the recent sell-off on Wall Street. The index is down from 93.1 in July.

Most of the major sectors are showing only modest moves in early trading, contributing to the lack of direction being shown by the broader markets.

Gold stocks are seeing substantial strength, however, with the NYSE Arca Gold Bugs Index jumping by 3.9 percent. The strength in the sector comes as gold for December delivery is climbing $14.10 to $1,136.70 an ounce.

Energy stocks are also seeing notable strength amid an increase by the price of crude oil, while weakness is visible among electronic storage stocks.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index surged up by 3 percent, while Australia's All Ordinaries Index rose by 0.6 percent. However, Hong Kong's Hang Seng Index bucked the uptrend and slid by 1 percent.

Meanwhile, the major averages have turned mixed on the day. While the U.K.'s FTSE 100 Index has risen by 0.4 percent, the French CAC 40 Index is down by 0.2 percent and the German DAX Index is down by 0.7 percent.

In the bond market, treasuries are seeing modest strength after ending the previous session roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.7 basis points at 2.151 percent.