Stocks Showing A Lack Of Direction In Early Trading - US Commentary
(Alliance News Via Acquire Media NewsEdge) WASHINGTON (Alliance News) - With traders expressing some uncertainty, stocks are showing a lack of direction in early trading on Friday. The major averages are lingering near the unchanged line after moving notably lower over the course of the two previous sessions.
Currently, the major averages are posting modest losses on the day. The Dow is down 11.04 points or 0.1% at 16,723.15, the Nasdaq is down 7.05 point or 0.2% at 4,290.58 and the S&P 500 is down 1.81 points or 0.1% at 1,928.30.
The choppy trading on Wall Street comes as traders weigh worries about escalating violence in Iraq against upbeat guidance from semiconductor giant Intel (INTC).
Some negative sentiment has been generated by news that Islamic militants have captured significant territory in Iraq, raising concerns about the outlook for crude oil supplies.
While both Iran and the US have indicated that they will offer aid to the Iraqi government, the escalating violence has led to worries about a broader regional conflict.
However, traders have also reacted positively to news that Intel raised its second quarter guidance due to stronger than expected demand for business PCs. Shares of Intel have surged up by 6.2% on the news.
After the close of trading on Thursday, Intel said it now expects second quarter revenues of USD13.7 billion, plus or minus USD300 million, up from its previous guidance of USD13 billion, plus or minus USD500 million.
For the full year, Intel said it now expects some revenue growth compared to its previous forecast for flat revenues. The company also lifted its gross margin guidance.
While most of the major sectors are showing only modest moves in response to the mixed catalysts, notable weakness has emerged among gold stocks. The NYSE Arca Gold Bugs Index is down by 1.5% after moving sharply higher over the past few sessions.
Housing stocks are also seeing some early weakness, while strength is visible among semiconductor and computer hardware stocks.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index advanced by 0.8%, while Australia's All Ordinaries Index dropped by 0.5%.
Meanwhile, the major European markets have all moved lower on the day. While the UK's FTSE 100 Index has fallen by 1%, the German DAX Index and the French CAC 40 Index are down by 0.6% and 0.5%, respectively.
In the bond market, treasuries are moving back to the downside after ending the previous session notably higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.4 basis points at 2.62%.
Copyright RTT News/dpa-AFX
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