Major Averages Continue To Turn In Mixed Performance In Mid-Day Trading

After moving in opposite directions early in the session, the major U.S. stock indexes continue to turn in a mixed performance in mid-day trading on Friday. The Dow is hovering in positive territory, while the broader Nasdaq and S&P 500 remain stuck in the red.

Currently, the Dow is up 133.76 points or 0.4 percent at 32,619.35 after reaching a new record intraday high. Meanwhile, the Nasdaq is down 159.83 points or 1.2 percent at 13,238.84 and the S&P 500 is down 14.47 points or 0.4 percent at 3,924.87.

The mixed performance on Wall Street comes amid a jump in bond yields, with the yield on the benchmark ten-year note surging back above 1.6 percent to its highest levels in over a year.

The increase in yields comes after President Joe Biden directed states to make all adults eligible for a coronavirus vaccine by May 1st.

The vaccine news combined with the new $1.9 trillion stimulus package has generated optimism about the economic outlook, reducing the appeal of bonds. Bond yields move in opposite direction to prices.

Yields saw further upside following the release of a report from the University of Michigan showing U.S. consumer sentiment improved by much more than expected in the month of March.

The University of Michigan said its consumer sentiment index jumped to 83.0 in March after dipping to 76.8 in February. Economists had expected the index to inch up to 78.5.

With the much bigger than expected increase, the consumer sentiment index reached its highest level since hitting 89.1 in March of 2020.

A separate report released by the Labor Department released showed U.S. producer prices increased in line with economist estimates on the month of February.

The Labor Department said its producer price index for final demand climbed by 0.5 percent in February after spiking by 1.3 percent in January. The price growth matched expectations.

Excluding prices for food, energy, and trade services, core producer prices edged up by 0.2 percent in February following a 1.2 percent jump in January.

The report also showed the annual rate of growth in producer prices surged up to 2.8 percent in February from 1.7 percent in January.

Core producer prices in February were up by 2.2 percent compared to the same month a year ago, reflecting an uptick from the 2.0 percent growth in January.

Sector News

Semiconductor stocks have moved sharply lower over the course of the session, resulting in a 2 percent slump by the Philadelphia Semiconductor Index.

Considerable weakness also remains visible among software stocks, as reflected by the 1.4 percent drop by the Dow Jones U.S. Software Index.

On the other hand, banking stocks continue to turn in a strong performance in mid-day trading, with the KBW Bank Index climbing by 1.8 percent to a record intraday high.

Airline stocks have also moved notably higher on the day, resulting in a 1.8 percent advance by the NYSE Arca Airline Index.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index surged up by 1.7 percent, while China’s Shanghai Composite Index rose by 0.5 percent.

Meanwhile, the major European markets turned in a mixed performance on the day. While the German DAX Index fell by 0.5 percent, while the French CAC 40 Index edged up by 0.2 percent and the U.K.’s FTSE 100 Index rose by 0.4 percent.

In the bond market, treasuries have climbed off their worst levels but continue to see notable weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 9.4 basis points at 1.621 percent.