Stocks Showing A Lack Of Direction In Early Trading - U.S. Commentary

(RTTNews) - Stocks are turning in a relatively lackluster performance in early trading on Friday, as traders seem reluctant to make any significant moves. The major averages are showing only modest moves after ending the previous session in the red.

Currently, the major averages are posting slim gains on the day. The Dow is up 5.04 points or less than a tenth of a percent at 18,522.27, the Nasdaq is up 13.89 points or 0.3 percent at 5,087.80 and the S&P 500 is up 4.34 points or 0.2 percent at 2,169.51.

The lack of direction being shown on Wall Street comes as traders are sticking to the sidelines amid a quiet day on the U.S. economic front.

Traders may also be looking ahead to the Federal Reserve's two-day monetary policy meeting scheduled for next week.

The Fed is widely expected to leave interest rates unchanged as officials wait to see the fallout from Britain's vote to leave the European Union.

Nonetheless, the central bank's accompanying statement is likely to be in focus, as investors attempt to gauge the outlook for the next rate hike.

Most of the major sectors are showing only modest moves, although considerable strength is visible among trucking stocks. Reflecting the strength in the sector, the Dow Jones Trucking Index is up by 1.8 percent.

Within the trucking sector, Swift Transportation (SWFT) is posting a standout gain after reporting better than expected second quarter earnings.

Telecom stocks are also seeing significant strength, driving the NYSE Arca Telecom Index up by 1.4 percent to its best levels in over a year.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index tumbled by 1.1 percent, while Hong Kong's Hang Seng Index edged down by 0.2 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.'s FTSE 100 Index is up by 0.4 percent, the French CAC 40 Index and the German DAX Index are down by 0.1 percent and 0.2 percent, respectively.

In the bond market, treasuries are seeing modest weakness but have climbed off their worst levels. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1 basis point at 1.575 percent.