(RTTNews) – Following the upward move seen over the course of the previous session, stocks are showing a lack of direction during trading on Friday. The major averages have spent the day bouncing back and forth across the unchanged line.
Currently, the major averages are turning in a mixed performance. While the Dow is up 45.82 points or 0.1 percent at 52,533.23, the S&P 500 is down 6.70 points or 0.1 percent at 7,536.94 and the Nasdaq is down 108.43 points or 0.4 percent at 26,098.46.
Stocks briefly came under pressure in reaction to President Donald Trump’s latest declaration that the ceasefire between the U.S. and Iran is “over” but quickly regained ground.
Trump claimed in a post on Truth Social that Iran has asked to continue “talks” and said the U.S. has agreed to do but reiterated his recent assertion that the ceasefire is “over.”
The choppy trading on Wall Street comes as traders seem reluctant to make significant moves ahead of the unofficial start of earnings season next week.
Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), JPMorgan Chase (JPM), Wells Fargo (WFC), Johnson & Johnson (JNJ), UnitedHealth (UNH) and Netflix (NFLX) are among the companies due to report their quarterly results.
“Investors will be looking for confirmation that AI-related investment continues to translate into robust earnings growth and resilient margins, particularly among the large technology companies that have driven much of this year’s rally,” said Daniela Hathorn, Senior Market Analyst at Capital.com.
She added, “With valuations still elevated, earnings guidance could prove just as important as the headline results themselves.”
A lack of major U.S. economic data may also be keeping some traders on the sidelines ahead of the release of key inflation reports next week.
Sector News
Reflecting the lackluster performance by the broader markets, most of the major sectors are showing only modest moves on the day.
Biotechnology stocks have shown a significant move to the downside, however, with the NYSE Arca Biotechnology Index tumbling by 2.7 percent.
Considerable weakness is also visible among airline stocks, as reflected by the 2.2 percent slump by the NYSE Arca Airline Index.
Pharmaceutical and semiconductor stocks are also seeing notable weakness, while housing stocks have moved sharply higher, driving the Philadelphia Housing Sector Index up by 2.1 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index jumped by 1.2 percent, while South Korea’s Kospi surged by 2.5 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.’s FTSE 100 Index is up by 0.2 percent, the French CAC 40 Index is down by 0.1 percent and the German DAX Index is down by 0.3 percent.
In the bond market, treasuries have moved back to the downside following yesterday’s rebound. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.8 basis points at 4.557 percent.
