Stocks Close Mixed Following Late-Session Pullback - U.S. Commentary

(RTTNews) - After showing a notable move to the upside in early trading on Friday, stocks came under pressure going into the close of the abbreviated trading session. The major averages pulled back well off their highs, with the Dow and the S&P 500 sliding into negative territory.

The major averages ended the day mixed, as the Nasdaq managed to hold on to a gain. While the Nasdaq rose 15.14 points or 0.4 percent to 4,059.89, the Dow edged down 10.92 points or 0.1 percent to 16,086.41 and the S&P 500 slipped 1.42 points or 0.1 percent to 1,805.81.

For the holiday-interrupted week, the Nasdaq surged up by 1.7 percent, while the Dow and the S&P 500 both inched up by 0.1 percent.

The early strength on Wall Street was partly due to the recent upward momentum for the markets, as the Dow and S&P 500 extended recent upward trends to reach new record highs.

The tech-heavy Nasdaq also added to recent gains, climbing further above 4,000 and reaching its best levels since 2000.

Trading activity remained somewhat subdued, however, with many traders remaining away from their desks following yesterday's holiday. A lack of major U.S. economic data also helped keep investors on the sidelines.

The subsequent pullback seen late in the trading day may have reflected concerns about the slew of economic data due to be released next week, particularly the monthly jobs report.

Traders seemed somewhat concerned that a strong jobs report could lead the Federal Reserve to begin scaling back its stimulus program at its next monetary policy meeting.

Among individual stocks, shares of Archer Daniels Midland (ADM) came under pressure after the Australian Federal Treasurer issued an order prohibiting the agriculture company's proposed acquisition of GrainCorp Ltd.

Sector News

Gold stocks saw considerable strength on the day, driving the NYSE Arca Gold Bugs Index up by 2.3 percent. With the gain, the index climbed further off the five-year closing low set on Tuesday.

The strength among gold stocks came amid an increase by the price of the precious metal, with gold for February delivery climbing $12.50 to $1,250.40 an ounce.

Significant strength was also visible among steel stocks, as reflected by the 1.4 percent gain posted by the NYSE Arca Steel Index. Universal Stainless (USAP) and Olympic Steel (ZEUS) posted strong gains.

Meanwhile, commercial real estate and airline stocks came under pressure, with the Morgan Stanley REIT Index and the NYSE Arca Airline Index falling by 1.1 percent and 1 percent, respectively.

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 fell by 0.4 percent, while Hong Kong's Hang Seng Index rose by 0.4 percent.

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

In the bond market, treasuries ended the day roughly flat after recovering from an early move to the downside. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged up by less than a basis point to 2.741 percent after reaching a high of 2.768 percent.

Looking Ahead

While the monthly jobs report is likely to be in focus next week, a slew of other economic data is also scheduled to be released.

Reports on national manufacturing activity, new home sales, and private sector employment are likely to attract some attention along with the Fed's Beige Book.