Stocks Seeing Modest Weakness In Morning Trading - U.S. Commentary

(RTTNews) - Stocks have moved modestly lower in morning trading on Friday, adding to the losses posted in the previous session. The major averages have all moved to the downside, with the Dow pulling back further off the one-month closing high it set on Tuesday.

Currently, the major averages are lingering in negative territory. The Dow is down 76.56 points or 0.3 percent at 24,588.33, the Nasdaq is down 37.66 points or 0.5 percent at 7,200.40 and the S&P 500 is down 8.65 points or 0.3 percent at 2,684.38.

A continued decline by Apple (AAPL) is weighing on the markets, with the tech giant slumping by 2.9 percent after tumbling by 2.8 percent on Thursday.

Apple remains under pressure after an analyst at Morgan Stanley warned of disappointing iPhone sales in the June quarter.

On the other hand, shares of General Electric (GE) have moved sharply higher after the conglomerate reported better than expected adjusted first quarter earnings.

Industrial giant Honeywell (HON) is also seeing some strength after reporting first quarter results that beat estimates and raising its full-year guidance.

Overall trading activity remains somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.

Next week, traders are likely to keep a close eye on reports on new and existing home sales, consumer confidence, durable goods orders and first quarter GDP.

The earnings season also kicks into high gear next week, as a slew of big-name companies are due to release their quarterly results.

Google parent Alphabet (GOOGL), Intel (INTC), Microsoft (MSFT), Coca-Cola (KO), Boeing (BA), and Verizon (VZ) are among the companies due to release their results next week.

Natural gas stocks have shown a significant move to the downside in morning trading, resulting in a 1.5 percent drop by the NYSE Arca Natural Gas Index. The index is pulling back further off the two-month closing high set on Wednesday.

A sharp drop by the price of gold is also weighing on gold stocks, while most of the other major sectors are showing only modest moves on the day.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index edged down by 0.1 percent, while Hong Kong's Hang Seng Index slumped by 0.9 percent.

Meanwhile, the major European markets are turning in another mixed performance on the day. While the German DAX Index has fallen by 0.4 percent, the French CAC 40 Index is up by 0.1 percent and the U.K.'s FTSE 100 Index is up by 0.3 percent.

In the bond market, treasuries are extending the notable decline seen over the two previous sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.8 basis points at 2.942 percent.