Stocks Turning In Mixed Performance In Mid-Day Trading - U.S. Commentary

(RTTNews) - With traders focused on the latest batch of earnings news amid a lack of major U.S. economic data, stocks are turning in a mixed performance during trading on Friday.

Currently, the major averages remain on opposite sides of the unchanged line. While the Nasdaq is up 15.28 points or 0.3 percent at 5,257.11, the Dow is down 43.76 points or 0.2 percent at 18,118.59 and the S&P 500 is down 2.00 points or 0.1 percent at 2,139.34.

The tech-heavy Nasdaq has benefited from a strong gain by Microsoft (MSFT), with the software giant jumping by 4.7 percent. Microsoft hit a new record intraday high earlier in the session.

The advance by shares of Microsoft comes after the company's first quarter adjusted earnings per share and revenues exceeded forecasts, helped by a strong performance by its Cloud business.

Global payments company PayPal (PYPL) has also moved notably higher after reporting third quarter earnings that matched estimates and a growing number of active accounts.

On the other hand, a drop by shares of General Electric (GE) is weighing on the Dow, with the conglomerate clumping by 1.7 percent.

The loss by GE comes after the company reported third quarter earnings that beat estimates but on lower than expected revenues. GE also lowered its full-year revenue growth forecast.

Sector News

Most of the major sectors continue to show only modest moves in mid-trading, contributing to the lackluster performance by the broader markets.

Significant strength is visible among tobacco stocks, however, with the NYSE Arca Tobacco Index jumping by 1.6 percent. The index is bouncing further off the four-month closing low it set on Wednesday.

Reynolds American (RAI) is leading the tobacco sector higher after British American Tobacco (BTI) offered to acquire the 58 percent stake in the company it does not already own for $47 billion.

On the other hand, natural gas stocks have come under pressure over the course of the session, dragging the NYSE Arca Natural Gas Index down by 1.1 percent. Southwestern Energy (SWN) is posting a steep loss after reporting weaker than expected third quarter earnings.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index fell by 0.3 percent, while Australia's All Ordinaries Index dipped by 0.2 percent. The Hong Kong markets were closed for a holiday.

Meanwhile, the major European markets ended the day roughly flat. While the German DAX Index inched up by 0.1 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index both edged down by 0.1 percent.

In the bond market, treasuries are showing a lack of direction for the third consecutive session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 1.745 percent.