Major Averages Close Mixed Following Lackluster Session - U.S. Commentary

(RTTNews) - After ending the previous session modestly lower, stocks turned in a lackluster performance during trading on Friday. The major averages spent the day bouncing back and forth across the unchanged line before closing mixed.

While the tech-heavy Nasdaq inched up 9.42 points or 0.1 percent to 7,433.85, the Dow dipped 58.67 points or 0.2 percent to 24,753.09 and the S&P 500 slipped 6.43 points or 0.2 percent to 2,721.33.

Despite the mixed performance on the day, the major averages all moved higher for the week. The Nasdaq jumped by 1.1 percent, while the Dow and the S&P 500 rose by 0.2 percent and 0.3 percent, respectively.

The choppy trading on Wall Street came as some traders were away from their desks, looking to get a head start on the long Memorial Day weekend.

Geopolitical uncertainty also kept some traders on the sidelines following President Donald Trump's decision to call off the historic summit with North Korean leader Kim Jong Un.

In a post on Twitter this morning, Trump seemed pleased with the North Korean response to the cancellation of the planned meeting.

"Very good news to receive the warm and productive statement from North Korea," Trump said. "We will soon see where it will lead, hopefully to long and enduring prosperity and peace. Only time (and talent) will tell!"

The tweet from Trump came after the North's state-run Korean Central News Agency carried a statement by Vice Foreign Minister Kim Kye-gwan.

In the statement, Kim indicated North Korea remains willing to hold talks with the U.S. and expressed a willingness to give Trump the "time and opportunity" to reconsider his decision.

"We remain unchanged in our goal and will to do everything we can for the peace and stability of the Korean peninsula and humankind," Kim said.

Meanwhile, traders largely shrugged off the latest batch of U.S. economic data, including a report from the Commerce Department showing a bigger than expected decrease in durable goods orders in the month of April.

The Commerce Department said durable goods orders slumped by 1.7 percent in April after spiking by an upwardly revised 2.7 percent in March. Economists had expected orders to drop by 1.4 percent.

Excluding a pullback in orders for transportation equipment, however, durable goods orders climbed by 0.9 percent in April after rising by 0.4 percent in March. Ex-transportation orders had been expected to increase by 0.5 percent.

A separate report from the University of Michigan unexpectedly showed a modest deterioration in consumer sentiment in the month of May.

Sector News

Most of the major sectors ended the day show showing only modest moves, although energy stocks saw substantial weakness amid a steep drop by the price of crude oil.

Crude for July delivery plummeted $2.83 to $67.88 a barrel following reports oil producing nations are considering easing production limits.

Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index plunged by 4.3 percent, the NYSE Arca Oil Index slumped by 2.6 percent and the NYSE Arca Natural Gas Index tumbled by 1.8 percent.

Considerable weakness was also visible among steel stocks, as reflected by the 1.7 percent loss posted by the NYSE Arca Steel Index. The index closed lower for the sixth time in seven sessions.

Gold stocks also saw notable weakness a modest decrease by the price of the precious metal, while housing and semiconductor stocks moved to the upside.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Friday. Japan's Nikkei 225 Index inched up by 0.1 percent, while Hong Kong's Hang Seng Index slid by 0.6 percent.

The major European markets also ended the day mixed. While the French CAC 40 Index edged down by 0.1 percent, the U.K.'s FTSE 100 Index rose by 0.2 percent and the German DAX Index advanced by 0.7 percent.

In the bond market, treasuries extended the upward move seen over the two previous sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 5 basis points to 2.931 percent.

Looking Ahead

Following the long holiday weekend, economic data is likely to be in focus next week due to the release of the Labor Department's closely watched monthly jobs report on Friday.

Reports on consumer confidence, personal income and spending, pending home sales, manufacturing activity and construction spending are also likely to attract attention.

The Federal Reserve is also due to release its Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts.

On the earnings front, HP Inc. (HPQ), Dick's Sporting Goods (DKS), American Eagle (AEO), Ciena (CIEN), Costco (COST), and Abercrombie & Fitch (ANF) are among the companies due to report their quarterly results next week.