Stocks Remain Nearly Flat Ahead Of Holiday Weekend - U.S. Commentary

(RTTNews) - After initially showing a lack of direction, stocks continue to turn in a lackluster performance in mid-day trading on Friday. The major averages have thus far spent the day bouncing back and forth across the unchanged line.

Currently, the major averages remain nearly flat, showing moves of less than a tenth of a percent. While the Dow is down 6.50 points at 19,912.38, the Nasdaq is up 1.13 points at 5,448.55 and the S&P 500 is up 0.07 points or 2.261.03.

The choppy trading on Wall Street comes as many traders are away from their desks, looking to get a head start on the holiday weekend.

Trading activity is likely to remain relatively subdued next week ahead of another three-day weekend in celebration of New Year's Day.

On the U.S. economic front, the Commerce Department released a report showing a much bigger than expected increase in new home sales in the U.S. in the month of November.

The report said new home sales surged up by 5.2 percent to an annual rate of 592,000 in November from 563,000 in October. Economists had expected new home sales to rise by 3 percent to a rate of 580,000.

A separate report from the University of Michigan said consumer sentiment improved by even more than initially estimated in the month of December.

The University of Michigan said its consumer sentiment index for December was upwardly revised to 98.2 from the preliminary reading of 98.0.

Economists had expected the index to remain at 98.0, which was still well above the final November reading of 93.8.

With the unexpected upward revision, the consumer sentiment index reached its highest levels since January of 2004.

Sector News

Despite the lack of direction being shown by the broader markets, gold stocks have shown a strong move to the upside on the day. Reflecting the strength in the sector, the NYSE Arca Gold Bugs Index has surged up by 1.8 percent.

The strength among gold stocks comes amid a modest increase by the price of the precious metal, with gold for February delivery rising $3.20 to $1,133.90 an ounce.

Significant strength is also visible among biotechnology stocks, as reflected by the 1.5 percent gain being posted by the NYSE Arca Biotechnology Index. The index is bouncing off its lowest closing level in well over a month.

Most of the other major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Friday, with the Japanese market closed for a holiday. Hong Kong's Hang Seng Index fell by 0.3 percent, while China's Shanghai Composite Index slumped by 0.9 percent.

Meanwhile, the major European markets closed roughly flat in light pre-holiday trading. While the German DAX Index has edged down by 0.1 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index inched up by 0.1 percent.

In the bond market, treasuries are seeing modest strength after ending the previous session nearly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.6 basis points at 2.537 percent.