Stocks Remain Mostly Positive Ahead Of Yellen Remarks - U.S. Commentary

(RTTNews) - After moving to the upside early in the session, stocks remain mostly positive in mid-day trading on Friday. With the gains on the day, the Nasdaq and the S&P 500 have once again reached their best intraday levels in a month.

Currently, the major averages are holding on to moderate gains. The Dow is up 35.37 points or 0.2 percent at 17,863.66, the Nasdaq is up 26.30 points or 0.5 percent at 4,928.07 and the S&P 500 is up 6.50 points or 0.3 percent at 2,096.60.

The strength on Wall Street partly reflects the upward momentum seen earlier in the week, when the major averages climbed well off their worst levels in about two months.

Traders are also reacting to the latest U.S. economic data, including a Commerce Department showing stronger than previously estimated first quarter GDP growth.

The report said the pace of GDP growth in the first quarter was upwardly revised to 0.8 percent from the initial estimate of 0.5 percent.

Nonetheless, the revised GDP growth in the first quarter compares to the 1.4 percent jump seen in the fourth quarter and the 0.9 percent increase expected by economists.

A separate report from the University of Michigan showed a modest downward revision to its consumer sentiment index for May, although the index was still at an eleven-month high.

Trading activity has remained somewhat subdued, however, as traders look ahead to remarks by Federal Reserve Chair Janet Yellen.

At 1:15 pm ET, Yellen is scheduled to speak with Harvard Professor Gregory Mankiw and receive an award from the Radcliffe Institute for Advanced Study.

Traders are likely to closely scrutinize Yellen's remarks for any hints regarding whether the Fed intends to raise interest rates at its meeting next month.

Sector News

Many of the major sectors are showing only modest moves on the day, although considerable strength remains visible among electronic storage stocks.

Reflecting the strength in the storage sector, the NYSE Arca Disk Drive Index is up by 1.8 percent, on pace to end the session at its best closing level in a month.

Biotechnology, internet, and airlines stocks are also seeing some strength in afternoon trading, although buying interest has remained subdued.

On the other hand, steel stocks have come under pressure, dragging the NYSE Arca Steel Index down by 1.5 percent. Gold stocks are also moving lower along with the price of the precious metal.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index rose by 0.4 percent, while Hong Kong's Hang Seng Index advanced by 0.9 percent.

The major European markets also ended a choppy trading day modestly higher. The U.K.'s FTSE 100 Index, the French CAC 40 Index and the German DAX Index all inched up by 0.1 percent.

In the bond market, treasuries are seeing modest weakness following the notable upward move seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.2 basis points at 1.835 percent.