Stocks Holding On To Moderate Gains In Mid-Day Trading - U.S. Commentary

(RTTNews) - After moving sharply lower over the course of the previous session, stocks have regained some ground during trading on Friday. Buying interest has remained somewhat subdued, however, limiting the upside for the markets.

Currently, the major averages are posting moderate gains, well off their highs for the session. The Dow is up 64.12 points or 0.4 percent at 17,009.92, the Nasdaq is up 14.33 points or 0.3 percent at 4,481.08 and the S&P 500 is up 4.23 points or 0.2 percent at 1,970.22.

The strength on Wall Street is partly due to bargain hunting following yesterday's sell-off, which pulled all three major averages down to their lowest closing levels in over a month.

However, traders seem somewhat reluctant to get back into the markets amid concerns that stocks remain at overbought levels in light of the Federal Reserve's plan to end its asset purchase program next month.

With quantitative easing set to come to a close, traders know it is likely only a matter of time before the central bank starts hiking interest rates.

On the economic front, the Commerce Department released a report before the start of trading showing that U.S. gross domestic product grew faster than previously estimated in the second quarter.

The Commerce Department said GDP increased by 4.6 percent in the second quarter compared to the previously reported 4.2 percent growth.

The upwardly revised growth, which matched economists' consensus estimate, reflects a notable turnaround from the 2.1 percent contraction seen in the first quarter.

Thomson Reuters and the University of Michigan also released a report showing an unrevised improvement in consumer sentiment in the month of September.

Among individual stocks, shares of Janus Capital (JNS) have moved sharply higher on the day on news that bond guru Bill Gross has left his post as chief investment officer at Pimco to join the investment firm.

Athletic apparel giant Nike (NKE) is also turning in a strong performance after reporting first quarter earnings and revenues that exceeded analyst estimates.

On the other hand, shares of Finish Line (FINL) have come under pressure after the athletic apparel retailer reported weaker than expected second quarter results.

Sector News

Despite the strength being shown by the broader markets, most of the major sectors are showing only modest moves in mid-day trading.

Trucking stocks are seeing considerable strength, however, with the Dow Jones Trucking Index advancing by 1.3 percent. The index is regaining some ground after ending the previous session at its lowest closing level in over a month.

YRC Worldwide (YRCW) has helped to lead the trucking sector higher, with the transportation services provider surging up by 4.6 percent.

Notable strength is also visible among oil service stocks, as reflected by the 1 percent gain being posted by the Philadelphia Oil Service Index. The strength in the sector comes as crude for November delivery is climbing $0.39 to $92.92 a barrel.

Electronic storage, railroad, and semiconductor stocks are also seeing some strength on the day, while gold stocks have moved to the downside along with the price of the precious metal.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Friday. Japan's Nikkei 225 Index dropped by 0.9 percent, while Hong Kong's Hang Seng Index fell by 0.4 percent. Meanwhile, China's Shanghai Composite Index bucked the downtrend and inched up by 0.1 percent.

The major European markets turned in a mixed performance on the day. While the German DAX Index edged down by 0.2 percent, the U.K.' FTSE 100 Index crept up by 0.2 percent and the French CAC 40 Index jumped by 0.9 percent.

In the bond market, treasuries are seeing modest weakness after ending the previous session notably higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.7 basis points at 2.528 percent.