Stocks Turning In Another Lackluster Performance - U.S. Commentary

(RTTNews) - Following the strength seen in the previous session, stocks are turning in a lackluster performance in early trading on Friday. The major averages are lingering near the unchanged line after ending Thursday's trading modestly higher.

Currently, the major averages are turning in a mixed performance. While the Nasdaq is up 8.24 points or 0.2 percent at 5,099.04, the Dow is down 26.30 points or 0.1 percent at 18,259.44 and the S&P 500 is down 1.46 points or 0.1 percent at 2,129.36.

The choppy trading on Wall Street comes following the release of the Labor Department's closely watched report on consumer price inflation.

While the report said the headline consumer price index rose in line with economist estimates, core prices rose by more than expected.

The Labor Department said its consumer price index inched up by 0.1 percent in April after rising by 0.2 percent in each of the two previous months. The modest increase matched economist estimates.

The core consumer price index, which excludes food and energy prices, rose by 0.3 percent in April following two consecutive 0.2 percent monthly increases.

The increase in core consumer prices exceeded the 0.1 percent uptick that was anticipated by economists.

Higher shelter costs contributed to the increase in core prices along with higher prices for medical care, household furnishings and used cars and trucks.

Compared to the same month a year ago, the report said consumer prices were down by 0.2 percent, while core prices were up by 1.8 percent.

Paul Ashworth, Chief U.S. Economist at Capital Economic said, "Overall, with the employment cost index suggesting that wage growth is accelerating and the CPI indicating that underlying price inflation is rising, the Fed can't wait forever before beginning to raise interest rates from near-zero."

"September is still the most likely lift-off date, but July is not out of the question, particularly not if we get another couple of robust rises in core consumer prices in May and June," he added.

Most of the major sectors are showing only modest moves, contributing to the lack of direction being shown by the broader markets.

Railroad and utilities stocks have moved to the downside, while some strength is visible among computer hardware stocks.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index rose by 0.3 percent, while Hong Kong's Hang Seng Index surged up by 1.7 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the German DAX Index is down by 0.3 percent, the U.K.'s FTSE 100 Index is up by 0.6 percent and the French CAC 40 Index is just above the unchanged line.

In the bond market, treasuries are giving back ground after turning in a strong performance in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.3 basis points at 2.218 percent.