U.S. Stocks Show Modest Move Back To The Downside

Following the Christmas Day holiday on Wednesday, stocks have moved modestly lower during trading on Thursday. The major averages have all moved to the downside, although selling pressure has been relatively subdued.

Currently, the major averages are well off their lows of the session but still in negative territory. The Dow is down 84.67 points or 0.2 percent at 43,212.36, the Nasdaq is down 50.76 points or 0.3 percent at 19,980.36 and the S&P 500 is down 11.82 points or 0.2 percent at 6,028.22.

The modest weakness on Wall Street comes as traders cash in on some of the recent strength in the markets, which saw the Nasdaq and the S&P 500 nearly offset last week’s sell-off.

The Dow closed higher for four straight sessions on the heels of a ten-day losing streak, while the Nasdaq and the S&P 500 moved higher for three straight days.

Overall trading activity remains light, however, as many traders remain away from their desks following the Christmas Day holiday on Wednesday.

Many major markets overseas remained closed on Thursday in observance of Boxing Day, which may also be keeping some traders on the sidelines.

On the U.S. economic front, the Labor Department released a report this morning showing first-time claims for U.S. unemployment benefits unexpectedly edged slightly lower in the week ended December 21st.

The report said initial jobless claims slipped to 219,000, a decrease of 1,000 from the previous week’s unrevised level of 220,000. Economists had expected jobless claims to rise to 224,000.

Despite the pullback by the broader markets, most of the major sectors are showing only modest moves on the day.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Thursday, with several major markets closed for Boxing Day. Japan’s Nikkei 225 Index jumped by 1.1 percent, while South Korea’s Kospi fell by 0.4 percent.

Meanwhile, the major European markets all remained closed on the day in observance of Boxing Day.

In the bond market, treasuries have moved back to the downside after recovering from early weakness to end Tuesday’s trading roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.6 basis points at 4.633 percent.

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