Stocks Turning In A Mixed Performance In Early Trading - U.S. Commentary

(RTTNews) - After ending the previous session roughly flat, stocks are turning in a mixed performance in early trading on Thursday. While the tech-heavy Nasdaq is extending a recent uptrend, the Dow and the S&P 500 have moved to the downside.

Currently, the major averages remain on opposite sides of the unchanged line. While the Nasdaq is up 13.99 points or 0.3 percent at 4,920.35, the Dow is down 51.47 points or 0.3 percent at 17,978.38 and the S&P 500 is down 1.86 points or 0.1 percent at 2,097.82.

The mixed performance on Wall Street partly reflects uncertainty about the situation in Greece, as traders continue to keep a close eye on the ongoing debt negotiations.

While many traders remain optimistic a deal will eventually be reached, news that Germany rejected Greece's proposal to extend its loan agreement raised concerns the country could exit from the eurozone.

A notable decline by shares of Wal-Mart (WMT) is weighing on the Dow, with the retail giant down by 2.5 percent after hitting a two-month low.

The loss by Wal-Mart comes after the company reported better than expected fourth quarter earnings but provided disappointing guidance. The company also announced plans to boost wages for its employees.

In U.S. economic news, the Labor Department recently released a report showing that initial jobless claims pulled back by more than expected in the week ended February 14th.

The report said initial jobless claims fell to 283,000, a decrease of 21,000 from the previous week's unrevised level of 304,000. Economists had expected jobless claims to drop to 290,000.

Meanwhile, the Philadelphia Federal Reserve recently released a separate report showing that its index of regional manufacturing activity unexpectedly decreased for the third straight month in February.

The report said the diffusion index for current general activity fell to 5.2 in February from 6.3 in January, although a positive reading indicates a continued increase in regional manufacturing activity.

The modest decrease came as a surprise to economists, who had expected the Philly Fed index to climb to a reading of 9.0.

A separate report from the Conference Board showed that its index of leading U.S. economic indicators rose by slightly less than anticipated in January.

Most of the major sectors are showing only modest moves in early trading, although considerable strength has emerged among airline stocks. With Delta (DAL) leading the way higher, the NYSE Arca Airline Index has advanced by 1.6 percent.

On the other hand, energy stocks have come under pressure, dragging the NYSE Arca Oil & Gas Index down by 1.6 percent. The weakness in the sector comes as crude for April delivery is tumbling $2.35 to $50.47 a barrel.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Thursday, with several markets closed for Lunar New Year holidays. Japan's Nikkei 225 Index rose by 0.4 percent, while Australia's All Ordinaries Index edged down by 0.1 percent.

The major European markets have also turned mixed on the day. While the U.K's FTSE 100 Index has dipped by 0.2 percent, the German DAX Index is just above the unchanged line and the French CAC 40 Index is up by 0.3 percent.

In the bond market, treasuries have climbed back near the unchanged line after seeing initial weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 2.073 percent.