Stocks Turning In A Lackluster Performance In Mid-Day Trading - U.S. Commentary

(RTTNews) - Stocks have fluctuated over the course of the trading day on Tuesday as traders digest some key economic data as well as earnings news from big-name companies. The major averages have been bouncing back and forth across the unchanged line.

Currently, the major averages are turning in a mixed performance. While the Nasdaq is down 18.39 points or 0.4 percent at 4,969.86, the Dow is up 43.78 points or 0.2 percent at 18,020.82 and the S&P 500 is up 1.24 points or 0.1 percent at 2,093.67.

The choppy trading on Wall Street comes following the release of closely watched reports on U.S. retail sales and producer price inflation.

The Commerce Department released a report before the start of trading showing that retail sales rebounded in March following three straight monthly declines, although the increase fell short of economist estimates.

While the report said retail sales climbed by 0.9 percent in March following a revised 0.5 percent decrease in February, economists had been expecting sales to surge up by 1.1 percent.

Chris Low, chief economist at FTN Financial, said, "Normally, a 0.9% retail sales increase in a month can be described as strong, but not this time, because the rise failed to reverse even half of the prior three months' weakness."

Meanwhile, the Labor Department released a separate report showing that producer prices rose for the first time in five months in March.

The Labor Department said its producer price index for final demand rose by 0.2 percent in March after falling by 0.5 percent in February. The increase in prices matched economist estimates.

Core producer prices, which exclude food and energy prices, also rose by 0.2 percent in March following a 0.5 percent drop in the previous month. Economists had expected core prices to tick up by 0.1 percent.

Traders are also digesting earnings news from some big-name companies, including JP Morgan (JPM), Wells Fargo (WFC), and Johnson & Johnson (JNJ).

While all three companies reported better than expected first quarter results, Johnson & Johnson lowered its full-year guidance due to the impact of the stronger dollar.

Semiconductor giant Intel (INTC) is among the companies due to release their quarterly results after the close of trading.

Sector News

While many of the major sectors are showing only modest moves on the day, steel stocks are seeing considerable strength in mid-day trading. Reflecting the strength in the sector, the NYSE Arca Steel Index has surged up by 2.5 percent.

The strength among steel stocks has been partly attributed to a report showing that Brazilian iron ore exports rose to a three-month high in March.

Significant strength is also visible in the energy sector, which is moving higher along with the price of crude oil. Crude for May delivery is currently jumping $1.43 to $53.34 a barrel.

Oil service stocks are posting particularly strong gains, driving the Philadelphia Oil Service Index up by 2.1 percent to a three-month intraday high.

Gold, networking, and trucking stocks are also seeing notable strength in mid-day trading, while weakness remains visible among railroad and semiconductor stocks.

Norfolk Southern (NSC) has helped to lead the railroad sector lower, tumbling by 5.6 percent after warning of weaker than expected first quarter earnings.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region ended Tuesday's trading mixed, with Japan's Nikkei 225 Index closing nearly flat for the second straight day. Hong Kong's Hang Seng Index tumbled by 1.6 percent, while China's Shanghai Composite Index rose by 0.3 percent.

The major European markets also turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index edged up by 0.2 percent, the French CAC 40 Index and the German DAX Index fell by 0.7 percent and 0.9 percent, respectively.

In the bond market, treasuries have moved notably higher on the heels of the disappointing retail sales data. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 7.9 basis points at 1.86 percent.