Stocks Showing A Lack Of Direction In Early Trading - U.S. Commentary

(RTTNews) - Stocks are turning in a lackluster performance in early trading on Wednesday after moving sharply higher over the past few sessions. The major averages have been bouncing back and forth across the unchanged line, unable to sustain any significant moves.

Currently, the major averages are nearly flat on the day. While the Nasdaq is down 0.90 points or less than a tenth of a percent at 4,418.57, the Dow is up 7.72 points or 0.1 percent at 16,622.53 and the S&P 500 is up 1.93 points or 0.1 percent at 1,943.21.

The choppy trading on Wall Street comes as traders seem to be taking a breather following the recent upward move, which helped to lift the major averages well off the multi-month lows set last week.

The Nasdaq and the S&P 500 closed higher for four consecutive sessions, although they remain well off their mid-September highs.

Uncertainty about the near-term outlook for the markets is helping to keep traders on the sidelines as they continue to digest the latest batch of earnings news.

Meanwhile, traders have largely shrugged off a report from the Labor Department showing a modest increase in consumer prices in the month of September.

The Labor Department said its consumer price index edged up by 0.1 percent in September following a 0.2 percent drop in August. The modest uptick came as a surprise to economists, who had expected prices to come in unchanged.

Excluding food and energy prices, the core consumer price index also inched up by 0.1 percent in September after coming in unchanged in the previous month. The increase matched economist estimates.

While most of the major sectors are showing only modest moves, notable weakness has emerged among gold stocks. The NYSE Arca Gold Bugs Index has fallen by 1.2 percent, with a drop by the price of gold weighing on the sector.

Railroad stocks are also seeing early weakness, while some strength is visible among computer hardware and utilities stocks.

Among individual stocks, shares of Yahoo! (YHOO) are moving sharply higher in early trading after the online media giant reported third quarter results that exceeded analyst estimates.

Wireless chipmaker Broadcom (BRCM) is also turning in a strong performance after reporting better than expected third quarter earnings and revenues.

On the other hand, shares of Cree (CREE) have come under pressure after the LED manufacturer reported first quarter results that missed estimates and provided disappointing second quarter guidance.

Aerospace giant Boeing (BA) has shown a more modest move to the downside despite reporting better than expected third quarter earnings and raising its full-year guidance.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 surged up by 2.6 percent, while Hong Kong's Hang Seng Index jumped by 1.4 percent.

The major European markets have also moved to the upside on the day. While the U.K.'s FTSE 100 Index has risen by 0.4 percent, the French CAC 40 Index and the German DAX Index are both up by 0.7 percent.

In the bond market, treasuries are extending their recent pullback off last week's highs. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.7 basis points at 2.245 percent.