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

(RTTNews) - With traders focused on the latest developments regarding Greece, stocks turned in a mixed performance during trading on Friday. The Dow moved moderately higher on the day, but the Nasdaq pulled back further off its record highs.

The major averages finished the day on opposite sides of the unchanged line. While the Dow rose 56.66 points or 0.3 percent to 17,947.02, the Nasdaq slid 31.68 points or 0.6 percent to 5,080.51 and the S&P 500 edged down 0.70 points or less than a tenth of a percent to 2,101.61.

However, the major averages all moved lower for the week. The Nasdaq dropped by 0.7 percent, while the Dow and the S&P 500 both fell by 0.4 percent.

The lackluster performance on Wall Street came as traders remained focused on the situation in Greece, as the debt-laden country and its creditors continue to struggle to reach an agreement.

The latest reports suggest Greece has rejected a 15.5 billion euro, five-month bailout extension due to concerns about the tough conditions demanded in return.

European finance ministers are scheduled to meet again on Saturday to continue the negotiations, with German Chancellor Angela Merkel saying the weekend's talks will be "decisive."

Merkel told reporters early Friday that European leaders "agreed that everything must be done to find a solution on Saturday."

The last-ditch attempt to reach an agreement comes as Greece has warned that it will be unable to make a 1.6 billion euro payment to the International Monetary Fund at the end of the month without further aid.

Amid the focus on Greece, traders largely shrugged off a report from the University of Michigan showing that U.S. consumer sentiment has improved by even more than previously estimated in June.

The report said the consumer sentiment index for June was upwardly revised to 96.1 from the mid-month reading of 94.6.

Economists had expected the index to be unrevised from the preliminary reading, which was already up sharply from the final May reading of 90.7.

Meanwhile, the gain posted by the Dow largely reflected a sharp jump by shares of Nike (NKE), which surged up by 4.3 percent after the athletic shoe and apparel maker reported better than expected fourth quarter results.

Sector News

Most of the major sectors ended the day showing only modest moves, although notable weakness was visible among semiconductor stocks. Reflecting the weakness in the sector, the Philadelphia Semiconductor Index tumbled by 2.4 percent.

Chip maker Micron Technology (MU) led the semiconductor sector lower, plummeting by 18.2 after reporting weaker than expected third quarter results and providing disappointing guidance.

Networking and computer hardware stocks also saw considerable weakness on the day, contributing to the continued pullback by the tech-heavy Nasdaq.

Meanwhile, tobacco, brokerage and utilities stocks saw some strength, helping to offset the weakness seen in the aforementioned sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Friday, with China's Shanghai Composite Index showing a particularly steep 7.4 percent drop. Hong Kong's Hang Seng Index tumbled by 1.8 percent, while Japan's Nikkei 225 Index fell by 0.3 percent.

Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index slumped by 0.8 percent, the German DAX Index edged up by 0.2 percent and the French CAC 40 Index rose by 0.4 percent.

In the bond market, treasuries moved sharply lower, extending the pullback seen throughout much of the past week. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 8.3 basis points to 2.476 percent.

Looking Ahead

News regarding the Greek negotiations is likely to remain in focus next week, although traders are also likely to keep a close eye on the monthly U.S. jobs report.

Reports on U.S. manufacturing activity, pending home sales, and consumer confidence may also attract some attention ahead of the holiday next Friday.