Stocks Turning In Lackluster Performance In Mid-Day Trading - U.S. Commentary

(RTTNews) - Stocks are turning in a relatively lackluster performance during trading on Friday following the volatility seen over the past couple weeks. After moving lower at the start of trading, the major averages have turned mixed on the day.

Currently, the major averages remain on opposite sides of the unchanged line. While the Nasdaq is up 16.36 points or 0.4 percent at 4,503.90, the Dow is down 45.51 points or 0.3 percent at 16,367.92 and the S&P 500 is down 2.42 points or 0.1 percent at 1,915.41.

The choppy trading on Wall Street comes as traders are expressing some uncertainty about the outlook for the markets following the big swings seen in recent sessions.

Stocks showed a substantial move to the downside last week, with the major averages falling to their lowest closing levels in well over a year last Thursday.

While bargain hunting helped the markets to recover earlier this week, buying interest seems to have waned over the past couple sessions.

Traders continue to keep a close eye on the price of crude oil, which is pulling back further off yesterday's intraday highs.

Crude for March delivery is currently tumbling $1.30 to $29.47 a barrel amid lingering concerns about a global supply glut.

On the U.S. economic front, the Labor Department released a report before the start of trading showing consumer prices came in flat in the month of January.

The Labor Department said its consumer price index was unchanged in January after edging down by 0.1 percent in December. Economists had expected prices to dip by another 0.1 percent.

Meanwhile, the report said core consumer prices, which exclude food and energy prices, rose by 0.3 percent in January following an upwardly revised 0.2 percent increase in December.

Core prices had been expected to inch up by 0.1 percent, matching the uptick originally reported for the previous month.

Despite the lack of direction being shown by the broader markets, shares of TrueCar (TRUE) have fallen sharply after the car-shopping website operator reported weaker than expected fourth quarter results and provided disappointing guidance.

Retailer Nordstrom (JWN) is also posting a steep loss after reporting fourth quarter results that came in below analyst estimates. The company also forecast weaker than expected full-year results.

On the other hand, shares of Applied Materials (AMAT) have shown a strong move to the upside after the semiconductor equipment maker reported first quarter results that beat estimates and provided upbeat guidance.

Sector News

While many of the major sectors are showing only modest moves on the day, substantial weakness is visible in the natural gas sector. Reflecting the weakness in the sector, the NYSE Arca Natural Gas Index has plummeted by 3.7 percent.

Southwestern Energy (SWN) is posting a particularly steep loss on the day, with the oil and gas producer tumbling by 14.1 percent.

Gold stocks have also come under pressure, dragging the NYSE Arca Gold Bugs Index down by 1.2 percent. The weakness in the gold sector comes despite an increase by the price of the precious metal.

Oil service, trucking, and telecom stocks are also seeing notable weakness, while significant strength has emerged among internet and semiconductor stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index tumbled by 1.4 percent, while Hong Kong's Hang Seng Index dropped by 0.4 percent.

The major European markets also moved to the downside on the day. While the German DAX Index slumped by 0.8 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index both fell by 0.4 percent.

In the bond market, treasuries have moved modestly higher, further offsetting the recent pullback. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.4 basis points at 1.745 percent.