Stocks Continue To Experience Choppy Trading On Mixed Data - U.S. Commentary

(RTTNews) - With traders digesting a mixed batch of U.S. economic data, stocks are turning in a lackluster performance during trading on Tuesday. Despite the choppy trading, the Dow and the S&P 500 have reached new record intraday highs.

Currently, the major averages remain on opposite sides of the unchanged line. While the Nasdaq is down 7.69 points or 0.2 percent at 4,773.74, the Dow is up 76.29 points or 0.4 percent at 18,035.73 and the S&P 500 is up 3.97 points or 0.2 percent at 2,082.51.

Early buying interest was generated by a report from the Commerce Department showing much stronger than previously estimated third quarter GDP growth.

The report said the final reading on third quarter GDP showed a 5.0 percent increase compared to the previously estimated 3.9 percent growth. Economists had expected the pace of GDP growth to be upwardly revised to 4.3 percent.

However, the Commerce Department also released separate reports showing unexpected decreases in durable goods orders and new home sales.

Durable goods orders fell by 0.7 percent in November compared to expectations for a 3.0 percent jump, while new home sales tumbled by 1.6 percent in November versus estimates for a modest increase.

Relatively light trading activity may also be contributing to the lackluster performance, as some traders get a head start on the holidays.

Among individual stocks, shares of Chesapeake Energy (CHK) have moved sharply higher after the energy producer announced a $1 billion common stock repurchase program as well as the completion of a $5 billion asset sale.

Drugstore chain Walgreen (WAG) is also turning in a strong performance after reporting adjusted first quarter earnings and revenues that exceeded analyst estimates.

Meanwhile, shares of Keurig Green Mountain (GMCR) have come under pressure on news the company is recalling 6.6 million of its Mini Plus Brewing Systems because of reported burns.

Sector News

Many of the major sectors are showing only modest moves, although considerable strength is visible among gold stocks. The NYSE Arca Gold Bugs Index has surged up by 3 percent, partly offsetting the 6.1 percent loss posted on Monday.

The rebound by gold stocks comes despite a decrease by the price of the precious metal, as gold for February delivery is slipping $1.80 to $1,178 an ounce.

Brokerage stocks are also turning in a strong performance on the day, resulting in a 1.4 percent gain by the NYSE Arca Broker/Dealer Index. With the gain, the index has reached its best intraday level in well over six years.

Software, steel, and banking stocks are also seeing significant strength in mid-day trading, with the Dow Jones Software Index jumping to a fourteen-year high.

On the other hand, biotechnology stocks are seeing substantial weakness, resulting in a 4.4 percent drop by the NYSE Arca Biotechnology Index. The index is pulling back further off the record closing high it set last Friday.

Healthcare and pharmaceutical stocks have also come under pressure on the day, partly offsetting the strength seen in the aforementioned sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Tuesday, although the Japanese markets were closed for a holiday. China's Shanghai Composite Index plummeted by 3 percent, while Hong Kong's Hang Seng Index fell by 0.3 percent.

Meanwhile, the major European markets all moved to the upside on the day. While the French CAC 40 Index surged up by 1.4 percent, the German DAX Index advanced by 0.6 percent and the U.K.'s FTSE 100 Index rose by 0.3 percent.

In the bond market, treasuries have come under pressure after ending the two previous sessions moderately higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.4 basis points at 2.206 percent.