15th Jan 2015 15:40
WASHINGTON (Alliance News) - With traders digesting a mixed batch of catalysts, stocks have fluctuated over the course of early trading on Thursday. The major averages have been bouncing back and forth across the unchanged line, unable to sustain any significant moves.
Currently, the major averages are turning in a mixed performance. While the Nasdaq is down 4.43 points or 0.1% at 4,634.89, the Dow is up 49.53 points or 0.3% at 17,476.62 and the S&P 500 is up 2.93 points or 0.2% at 2,014.20.
The choppy trading on Wall Street comes as traders digest a slew of US economic data as well as the latest earnings news.
Before the start of trading, the Labor Department released a report showing that producer prices fell at their fastest rate in over three years in December, although the drop was still smaller than economists had expected.
The report said the producer price index for final demand fell by 0.3% in December, while economists had expected the index to decrease by 0.4%.
Excluding food and energy prices, the core producer price index rose by 0.3% in December after coming in unchanged in the previous month. The increase exceeded estimates for a 0.1% uptick.
The Labor Department also released a separate report showing that initial jobless claims jumped to their highest level in four months in the week ended January 10th.
Additionally, the New York and Philadelphia Federal Reserves released a pair of reports painting a mixed picture of activity in the manufacturing sector.
Traders are also digesting disappointing earnings from Bank of America (BAC) and Citigroup (C), volatility among commodities prices and news the Swiss Central Bank scrapped its cap on the franc versus the euro.
Despite the lackluster performance by the broader markets, gold stocks have shown a substantial move to the upside on the day. The NYSE Arca Gold Bugs Index has surged up by 5.3%, with the strength coming amid a sharp jump by the price of gold.
Airline, semiconductor, and natural gas stocks are also seeing early strength, while housing stocks have come under pressure.
In overseas trading, most stock markets across the Asia-Pacific moved back to the upside during trading on Thursday. Japan's Nikkei 225 Index surged up by 1.9%, while China's Shanghai Composite Index soared by 3.5%.
The major European markets are also seeing significant strength on the day. While the UK's FTSE 100 Index has jumped by 1.3%, the German DAX Index and the French CAC 40 Index are up by 2% and 2.2%, respectively.
In the bond market, treasuries have moved modestly higher, extending a recent upward trend. 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 1.821%.
Copyright RTT News/dpa-AFX