Stocks Close Mixed Following Lackluster Trading Day - U.S. Commentary

(RTTNews) - Stocks showed a lack of direction over the course of the trading day on Friday after failing to sustain an initial upward move. Despite the choppy trading, the Dow once again managed to end the session at a new record closing high.

The major averages turned in a mixed performance on the day. While the Dow crept up 13.75 points or 0.1 percent to 17,279.74, the Nasdaq dipped 13.64 points or 0.3 percent to 4,579.79 and the S&P 500 edged down 0.96 points or 0.1 percent to 2,010.40.

However, the major averages all moved higher for the week. The Nasdaq rose by 0.3 percent, while the S&P 500 surged up by 1.3 percent and the Dow jumped by 1.7 percent.

The initial strength on Wall Street partly reflected a positive reaction to news that Scotland voted 55 percent to 45 percent against breaking away from the United Kingdom.

Traders had previously expressed some concerns about the global economic impact of a Scottish vote in favor of independence.

Buying interest waned not long after the start of trading, however, as traders seemed reluctant to continue pushing stocks higher following recent strength.

Disappointing quarterly results from Oracle (ORCL) also weighed on the markets, with the business software giant tumbling by 4.2 percent.

After the close of trading on Thursday, Oracle reported adjusted first quarter earnings that rose year-over-year but came in below economist estimates. The company also revealed that co-founder Larry Ellison is stepping down as CEO.

Additionally, the Conference Board released a report showing that its index of leading U.S. economic indicators rose by less than expected in the month of August.

The Conference Board said its leading economic index edged up by 0.2 percent in August following an upwardly revised 1.1 percent jump in July. Economists had expected the index to climb by 0.4 percent.

Ken Goldstein, an economist at the Conference Board, said, "The leading indicators point to an economy that is continuing to gain traction, but most likely won't repeat its stellar second quarter performance in the second half."

Meanwhile, shares of Alibaba (BABA) spiked higher in their first day of trading on the NYSE, with the Chinese e-commerce giant surging up by 38.1 percent on heavy volume.

Sector News

Many of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets.

Gold stocks showed a substantial move to the downside, however, with the NYSE Arca Gold Bugs Index tumbling by 1.7 percent. The drop extended a recent downtrend by the index, which fell to a three-month closing low.

The continued weakness among gold stocks came amid a decrease by the price of the precious metal, with gold for December delivery sliding $10.30 to an eight-month closing low of $1,216.60 an ounce.

Significant weakness was also visible among steel stocks, as reflected by the 1.5 percent loss posted by the NYSE Arca Steel Index. Cliffs Natural Resources (CLF) and Mechel (MTL) posted steep losses.

Computer hardware, semiconductor and networking stocks also saw notable weakness, contributing to the pullback by the tech-heavy Nasdaq.

On the other hand, tobacco and utilities stocks moved to the upside on the day, although buying interest was relatively subdued.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index surged up 1.6 percent to a seven-year closing high, while Hong Kong's Hang Seng Index advanced by 0.6 percent.

Meanwhile, the major European markets 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 0.3 percent and the German DAX Index closed just above the unchanged line.

In the bond market, treasuries showed a notable move back to the upside following recent weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.2 basis points to 2.587 percent.

Looking Ahead

Following several key market-moving events seen over the past week, the calendar for next week is relatively quiet.

Nonetheless, traders are likely to keep a close eye on reports on durable goods and new and existing home sales as well as speeches by several Federal Reserve officials.