News Column

Stocks Showing A Lack Of Direction In Early Trading - US Commentary

June 27, 2014

WASHINGTON (Alliance News) - After recovering from an early move to the downside over the course of the previous session, stocks are showing a lack of direction in early trading on Friday. 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 up 1.54 points or less than a tenth of a % at 4,380.58, the Dow is down 31.08 points or 0.2% at 16,815.05 and the S&P 500 is down 1.58 points or 0.1% at 1,955.64.

The choppy trading on Wall Street reflects uncertainty about the near-term outlook for the markets following the recent move to record highs by the Dow and the S&P 500.

While some traders have seemingly been looking for any excuse to cash in on the recent gains, the selling pressure is typically offset by concerns about missing out on further upside.

On the economic front, Thomson Reuters and the University of Michigan released a report showing that consumer sentiment improved in the month of June.

The report showed that the consumer sentiment index for June was upwardly revised to 82.5 from the preliminary reading of 81.2.

With the upward revision, the index exceeded economist estimates and came in above the final May reading of 81.9.

Most of the major sectors are showing only modest moves, although some weakness has emerged among chemical stocks. Reflecting the weakness in the chemical sector, the Dow Jones Chemicals Index has fallen by 1%.

DuPont (DD) is leading the chemical sector lower after the industry giant cut its second quarter and full-year earnings guidance.

Steel and biotech stocks are also seeing some weakness in early trading, while strength is visible among gold stocks.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan'sNikkei 225 Index tumbled by 1.4%, while Hong Kong'sHang Seng Index edged up by 0.1%.

The major European markets have also turned mixed on the day. While the French CAC 40 Index has dipped by 0.2%, the UK'sFTSE 100 Index and the German DAX Index are up by 0.3% and 0.1%, respectively.

In the bond market, treasuries have moved modestly higher, extending the recent upward trend. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.4 basis points at 2.511%.

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Source: Alliance News

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