Major Averages Bouncing Back And Forth Across Unchanged Line

(RTTNews) - Stocks are showing a lack of direction in early trading on Friday after ending the previous session sharply higher. The major averages have been bouncing back and forth across the unchanged line, unable to sustain any significant moves.

The choppy trading on Wall Street partly reflects a mixed reaction to the latest batch of earnings news, with big-name companies like Microsoft (MSFT) and Amazon (AMZN) moving in opposite directions after reporting their quarterly results.

Shares of Microsoft have surged up by 1.8 percent after the software giant reported fiscal first quarter results that beat expectations.

On the other hand, shares of Amazon are tumbling by 7.1 after the online retailer reported third quarter results that trailed expectations and issued below consensus revenue guidance for the fourth quarter.

Traders are also digesting news that a patient at a New York City hospital has tested positive for Ebola as well as a report from the Commerce Department showing a modest uptick in new home sales.

While most of the major sectors are showing only modest moves, considerable strength has emerged among steel stocks. Reflecting the strength in the sector, the NYSE Arca Steel Index is climbing by 1.1 percent.

Semiconductor and airline stocks are also moving to the upside, while energy stocks have come under pressure along with the price of crude oil.

Currently, the major averages are posting modest gains. The Dow is up 38.02 points or 0.2 percent at 16,715.92, the Nasdaq is up 13.51 points or 0.3 percent at 4,466.31 and the S&P 500 is up 3.85 points or 0.2 percent at 1,954.67.