Stocks Turn Mixed After Initial Upward Move - U.S. Commentary

(RTTNews) - Stocks have turned mixed over the course of morning trading on Wednesday after once again failing to sustain an initial upward move. The major averages have pulled back off their early highs, although the tech-heavy Nasdaq has managed to remain in positive territory.

Currently, the major averages remain stuck on opposite sides of the unchanged line. While the Nasdaq is up 11.49 points or 0.3 percent at 3,590.77, the Dow is down 33.68 points or 0.2 percent at 15,534.06 and the S&P 500 is down 2.18 points or 0.1 percent at 1,690.21.

The mixed performance that has emerged on Wall Street comes as traders digest the latest batch of earnings news as well as a better than expected report on new home sales.

The Nasdaq is benefiting from a significant advanced by shares of Apple (AAPL), with the iPad and iPhone maker currently up by 5.8 percent.

After the close of trading on Tuesday, Apple reported fiscal third quarter earnings that fell year-over-year but came in above analyst estimates. The company also reported better than expected revenues.

Meanwhile, a notable drop by shares of Caterpillar (CAT) is weighing on the Dow. The construction equipment maker is down by 2.6 percent after reporting disappointing second quarter results and lowering its full-year guidance.

Traders are also reacting to a report from the Commerce Department showing that new home sales rose by much more than expected in June, reaching their highest level in five years.

The report said new home sales surged up by 8.3 percent to an annual rate of 497,000 in June from the revised May rate of 459,000.

The report is seen as a positive sign for the house market but has also added to concerns about the outlook for the Federal Reserve's stimulus program.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan's Nikkei 225 Index dipped by 0.3 percent, while Hong Kong's Hang Seng Index edged up by 0.2 percent.

The major European markets have also turned mixed on the day. While the U.K.'s FTSE 100 Index has dipped by 0.2 percent, the German DAX Index is up by 0.1 percent and the French CAC 40 Index is up by 0.6 percent.

In the bond market, treasuries are seeing considerable weakness, pulling back further off their recent highs. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 5.9 basis points at 2.575 percent.