Major Averages Posting Modest Losses In Mid-Day Trading - U.S. Commentary

(RTTNews) - After initially showing a lack of direction, stocks continue to turn in a lackluster performance in mid-day trading on Friday. The major averages have pulled back into negative territory, although selling pressure has remained subdued.

In recent trading, the major averages have climbed off their worst levels but remain in the red. The Dow is down 8.34 points or less than a tenth of a percent at 24,829.17, the Nasdaq is down 16.00 points or 0.2 percent at 6,934.16 and the S&P 500 is down 1.68 points or 0.1 percent at 2,685.86.

Stocks frequently benefit from so-called window dressing on the last day of the year, but investors may already be confident in their positions following the strong upward move seen in 2017.

Many traders are likely looking to get a head start on the New Year's weekend, with a lack of major U.S. economic data also contributing to light trading.

Following the long weekend, next week's trading may be impacted by reaction to the monthly employment report as well as data on manufacturing and service sector activity.

The Federal Reserve is also scheduled to release the minutes of its latest monetary policy meeting next Wednesday, potentially shedding light on the outlook for interest rates in the new year.

Among individual stocks, shares of Bonanza Creek Energy (BCEI) have fallen sharply on news SandRidge Energy (SD) has terminated its agreement to acquire the oil and natural gas company.

Integrated technology and business services provider Syntel (SYNT) is also posting a notable loss after Wells Fargo downgraded its rating on the company's stock to Underperform from Market Perform.

On the other hand, shares of AstraZeneca (AZN) have moved to the upside after JPMorgan Chase upgraded its rating on the biopharmaceutical company to Overweight from Neutral.

Sector News

Despite the weakness being shown by the broader markets, most of the major sectors are showing only modest moves in mid-day trading.

Notable weakness is visible among networking stocks, however, with the NYSE Arca Networking Index slumping by 1.2 percent. The index is pulling back off its best closing level in over sixteen years.

ADTRAN (ADTN) has led the networking sector lower, tumbling by 13.5 percent after providing disappointing fourth quarter guidance.

On the other hand, tobacco stocks are extending a recent upward trend, driving the NYSE Arca Tobacco Index up by 1.1 percent. With the gain, the index has reached a record intraday high.

Universal (UVV), Philip Morris (PM), and Altria (MO) are turning in some of the tobacco sector's best performances on the day.

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 dipped by 0.1 percent, while Hong Kong's Hang Seng Index crept up by 0.2 percent.

The major European markets also ended the day mixed. While the U.K.'s FTSE 100 Index advanced by 0.9 percent, the French CAC 40 Index fell by 0.3 percent and the German DAX Index dropped by 0.5 percent.

In the bond market, treasuries have moved slightly higher following the pullback seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1 basis point at 2.422 percent.