Stocks Turning In Another Lackluster Performance - U.S. Commentary

(RTTNews) - After ending the previous session little changed, stocks are turning in another lackluster performance during trading on Friday. The major averages have spent much of the day bouncing back and forth across the unchanged line.

Currently, the major averages are turning in a mixed performance on the day. While the Nasdaq is down 2.53 points or 0.1 percent at 5,031.03, the Dow is up 50.05 points or 0.3 percent at 17,458.30 and the S&P 500 is up 4.07 points or 0.2 percent at 2,087.46.

The choppy trading on Wall Street comes following the release of some key U.S. economic data, including a report from the Federal Reserve showing a bigger than expected increase in industrial production.

The report said industrial production climbed by 0.6 percent in July after inching up by 0.1 percent in June. Economists had expected production to increase by about 0.4 percent.

The bigger than expected increase in production reflected a rebound in manufacturing output, which the Fed attributed to an increase in production of motor vehicle assemblies.

Chris Low, chief economist at FTN Financial, said, "Consumers are still spending money, carrying manufacturing through a difficult environment marked by sluggish exports and cautious business investment."

"This report is likely to be welcomed by the Fed point as further evidence of a manufacturing recovery from the blow dealt by last year's sharp rise in the dollar," he added.

A separate report from the Labor Department showed that producer prices rose by slightly more than expected in July amid a notable increase in service prices.

Traders seem somewhat reluctant to make significant moves, with uncertainty about the situations in China and Greece weighing on their minds.

Sector News

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

Biotechnology stocks have come under considerable selling pressure, however, with the NYSE Arca Biotechnology Index falling by 1.6 percent. With the drop, the index is on pace to end the session at a three-month closing low.

Cepheid (CPHD), Agios Pharmaceuticals (AGIO), and Alkermes (ALKS) are turning in some of the biotech sector's worst performances.

Oil service, gold, and semiconductor stocks have also moved lower on the day, while strength is visible among tobacco, steel, and brokerage stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index fell by 0.4 percent, while China's Shanghai Composite Index rose by 0.3 percent.

Meanwhile, the major European markets all moved to the downside on the day. While the French CAC 40 Index dropped by 0.6 percent, the U.K.'s FTSE 100 Index and the German DAX Index both fell by 0.3 percent.

In the bond market, treasuries have climbed back near the unchanged line after seeing early weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 2.191 percent.