After moving sharply higher over the course of the previous session, stocks are turning in a relatively lackluster performance during trading on Friday. The major averages have spent the day bouncing back and forth across the unchanged line.
Currently, the major averages are narrowly mixed. While the Dow is down 101.62 points or 0.2 percent at 44,609.81, the S&P 500 is up 0.32 points or less than a tenth of a percent at 6,115.39 and the Nasdaq is up 23.81 points or 0.1 percent at 19,969.46.
The choppy trading on Wall Street comes as traders express some uncertainty about the near-term outlook for the markets following yesterday’s rally, which saw the S&P 500 jump near its record highs despite data showing a bigger than expected increase by producer prices.
Traders are also digesting a mixed batch of U.S. economic data, including a Commerce Department report showing retail sales slumped by much more than expected in January.
The report said retail sales slid by 0.9 percent in January after climbing by an upwardly revised 0.7 percent in December.
Economists had expected retail sales to edge down by 0.1 percent compared to the 0.4 percent increase originally reported for the previous month.
However, economists noted the sharp decline was largely due to extreme wintery conditions and the California wildfires.
A separate report from the Federal Reserve showed industrial production rose by more than in January, although the increase was largely due to a weather-related surge by utilities output.
The Fed said industrial production climbed by 0.5 percent in January after jumping by an upwardly revised 1.0 percent in December.
Economists had expected industrial production to rise by 0.3 percent compared to the 0.9 percent advance originally reported for the previous month.
“Retail sales will likely recover in coming months as Californians pick up the pieces and as winter weather affects the Midwest and East Coast less,” said Bill Adams, Chief Economist for Comerica Bank.
“Similarly, the industrial production report was choppy in January with obvious weather effects boosting utilities demand and weighing on mining and manufacturing,” he added. “These short-term fluctuations will fade quickly.”
Sector News
Most of the major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.
Computer hardware stocks are extending the surge seen in the previous session, however, with the NYSE Arca Computer Hardware Index climbing by 1.6 percent to a new record intraday high.
Oil stocks are also turning in a strong performance despite a decrease by the price of crude oil, while gold stocks are moving sharply lower along with the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 2.9 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Friday. Hong Kong’s Hang Seng Index spiked by 3.7 percent and China’s Shanghai Composite Index rose by 0.4 percent, although Japan’s Nikkei 225 Index bucked the uptrend and slid by 0.8 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the French CAC 40 Index is up by 0.2 percent, the U.K.’s FTSE 100 Index and the German DAX Index are both down by 0.5 percent.
In the bond market, treasuries are extending the strong upward move seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 7.4 basis points at 4.451 percent.
Business News
U.S. Stocks Little Changed Following Yesterday’s Rally
2025-02-14 16:40:34
