U.S. Stocks Mostly Positive Amid Cautious Trading
Stocks are mostly positive in morning trading on Friday following the sharp pullback seen in the previous session. Buying interest has remained somewhat subdued, however, limiting the upside for the major averages.
The major averages have fluctuated but are currently all in positive territory. The Dow is up 145.86 points or 0.5 percent at 27,680.44, the Nasdaq is up 6.47 points or 0.1 percent at 10,926.06 and the S&P 500 is up 9.82 points or 0.3 percent at 3,349.01.
Bucking the trend seen in most recent sessions, tech stocks do not appear to be driving the markets in morning trading.
The advance by the markets actually comes despite a notable drop by shares of Apple (AAPL), which have been a key driver.
Following the recent volatility in the sector, traders may be cycling out of tech stocks and into other more neglected areas of the markets.
Among individual stocks, shares of Zumiez (ZUMZ) are sharply higher after the actions sports apparel and equipment retailer reported better than expected fiscal second results.
Casual footwear maker Crocs (CROX) is also posting a standout gain after providing upbeat third quarter revenue guidance.
On the other hand, shares of Dave & Buster’s (PLAY) have come under pressure after the restaurant chain reported a narrower than expected fiscal second quarter loss but on revenues that missed analyst estimates.
In U.S. economic news, the Labor Department released a report showing consumer prices increased by slightly more than anticipated in the month of August.
The Labor Department said its consumer price index climbed by 0.4 percent in August after advancing by 0.6 percent for two straight months. Economists had expected consumer prices to rise by 0.3 percent.
Excluding food and energy prices, core consumer prices still rose by 0.4 percent in August following a 0.6 percent increase in July. Core consumer prices were expected to edge up by 0.2 percent.
Steel stocks have shown a significant move to the upside in morning trading, driving the NYSE Arca Steel Index up by 1.8 percent.
Considerable strength has also emerged among housing stocks, as reflected by the 1.2 percent gain being posted by the Philadelphia Housing Sector Index Index.
Semiconductor, chemical, and biotechnology stocks are also seeing notable strength, contributing to the advance by the broader markets.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index climbed by 0.7 percent, while China’s Shanghai Composite Index advanced by 0.8 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the German DAX Index is down by 0.3 percent, the French CAC 40 Index is up by 0.1 percent and the U.K.’s FTSE 100 Index is up by 0.2 percent.
In the bond market, treasuries are seeing modest strength after turning positive over the course of the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.3 basis points at 0.672 percent.
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