Stocks Turning In Lackluster Performance After Initial Drop - U.S. Commentary

(RTTNews) - While stocks moved lower at the start of trading on Thursday, selling pressure waned not long after the open. The major averages have subsequently bounced off their lows for the young session, with the Nasdaq climbing into positive territory.

Currently, the major averages are turning in a mixed performance. While the Nasdaq is up 2.31 points or 0.1 percent at 4,217.20, the Dow is down 46.18 points or 0.3 percent at 16,435.76 and the S&P 500 is down 3.36 points or 0.2 percent at 1,845.02.

The initial weakness on Wall Street was partly due to profit taking following the strong gains posted in the two previous sessions. The gains lifted the S&P 500 to a new record high, while the Nasdaq reached its best levels since 2000.

Weaker than expected earnings from Citigroup (C) and news of lower holiday sales at Best Buy (BBY) also weighed on the markets.

Citigroup is down by 3.5 percent after reporting fourth quarter adjusted earnings that rose to $0.82 per share from $0.69 per share a year ago but came in below estimates for $0.95 per share.

Additionally, shares of Best Buy have plummeted by 27.7 percent after the consumer electronics retailer reported a 0.9 percent drop in U.S. comparable store sales in the nine weeks ended January 4th

However, a report from the Philadelphia Federal Reserve showing stronger than expected growth in regional manufacturing activity helped to limit the downside for the markets.

The Philly Fed said its diffusion index of current activity rose to 9.4 in January from a revised 6.4 in December, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected the index to climb to 8.7.

Most of the major sectors are subsequently showing only modest moves, although some strength has emerged among biotechnology stocks.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan's Nikkei 225 Index fell by 0.4 percent, while Hong Kong's Hang Seng Index ended the day up by 0.4 percent.

The major European markets have also turned mixed on the day. While the U.K.'s FTSE 100 Index has inched up by 0.1 percent, the German DAX Index and the French CAC 40 Index are down by 0.1 percent and 0.2 percent, respectively.

In the bond market, treasuries have moved back to the upside after closing lower in the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.3 basis points at 2.851 percent.