Stocks Showing A Lack Of Direction In Early Trading - U.S. Commentary

(RTTNews) - After moving higher at the open, stocks have shown a lack of direction over the course of early trading on Thursday. The major averages have pulled back off their highs for the young session and are now lingering near the unchanged line.

Currently, the major averages are turning in a mixed performance. While the Nasdaq is up 5.25 points or 0.1 percent at 4,956.07, the Dow is down 12.41 points or 0.1 percent at 17,890.10 and the S&P 500 is down 0.31 points or less than a tenth of a percent at 2,081.59.

The choppy trading on Wall Street comes as traders continue to digest the minutes of the latest Federal Reserve meeting released Wednesday afternoon.

The minutes showed that Fed officials were divided about when to begin raising interest rates, with some calling for a rate hike in June even as others suggested waiting until next year.

Uncertainty about the outlook for interest rates may increase the focus on economic data in the weeks leading up to the next Fed meeting.

The Labor Department released a report before the start of trading showing a rebound in initial jobless claims in the week ended April 4th, although the less volatile four-week moving average dropped to a nearly fifteen-year low.

The report said initial jobless claims climbed to 281,000 falling to a two-month low of 267,000 in the previous week. Economists had expected jobless claims to rise to 285,000.

Meanwhile, the Labor Department also said the less volatile four-week moving average edged down to 282,250, a decrease of 3,000 from the previous week's revised average of 285,250.

The modest drop pulled the four-week moving average down to its lowest level since hitting 281,500 in June of 2000.

On the earnings front, shares of Alcoa (AA) are moving lower in early trading after the aluminum giant reported first quarter earnings that beat analyst estimates but on weaker than expected revenues.

Housewares retailer Bed Bath & Beyond (BBBY) is also seeing early weakness after reporting fourth quarter earnings that met estimates but providing disappointing guidance.

Meanwhile, shares of Apogee Enterprises (APOG) have moved to the upside after the glass products company reported better than expected fourth quarter results.

Despite the lack of direction being shown by the broader markets, oil service stocks have shown a strong move to the upside. The Philadelphia Oil Service Index has risen by 1.6 percent, reaching its best intraday level in over a month.

The gains by oil service stocks come amid a rebound by the price of crude oil, with crude for May delivery climbing $0.68 to $51.10 a barrel after tumbling $3.56 to $50.42 a barrel on Wednesday.

Natural gas and networking stocks are also seeing some early strength, while commercial real estate, housing, and utilities stocks have moved to the downside.

In overseas trading, stock markets across the Asia-Pacific region turned ended Thursday's trading mixed. While Japan's Nikkei 225 Index advanced by 0.8 percent and Hong Kong's Hang Seng Index surged up by 2.7 percent, China's Shanghai Composite Index slumped by 0.9 percent.

Meanwhile, the major European markets have all moved to the upside on the day. The German DAX Index has risen by 0.8 percent, while the U.K.'s FTSE 100 Index and the French CAC 40 Index are up by 1.1 percent and 1.2 percent, respectively.

In the bond market, treasuries are moving moderately lower after ending the previous session roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.1 basis points at 1.916 percent.