Markets

Midday Update: Stocks Fade Despite Bullish Data, Dovish Fed

Stocks gave up slim opening gains tied to bullish economic data, drifting into the red Thursday after yesterday's post-FOMC rally ran into headwinds from investors' reluctance to breach new record levels. Mixed quarterly earnings and higher energy prices as violence in Iraq continues also weighed on share prices.

Economic data today failed to encourage Wall Street to extend pre-market gains despite the Philly Fed Business Conditions Index hitting a nine-month high of 17.0, beating estimates for a small decline to 13.0 from April's unrevised 15.4 reading.

Initial jobless claims declined a greater-than-expected 6,000 to 312,000, just below the consensus estimate of 313,000. Claims for the week ended June 7 were revised upward by 1,000 to 318,000.

Also today, leading economic indicators were not as strong as the Street expected, although the reported 0.5% gain still indicated continued economic growth.

European equities were able to get much more mileage out of the FOMC meeting on Wednesday with Germany's DAX piercing 10,000 and the FTSE-100 buoyed by a rally in Rolls-Royce on a $1.7 billion stock buyback program.

Crude oil was up $0.70 to $106.39 per barrel. Natural gas was up $0.02 to $4.68 per 1 million BTU. Gold was up $25.50 to $1,298.40 an ounce, while silver was up $0.54 to $20.32 an ounce. Copper was unchanged at $3.06 per pound.

Among energy ETFs, the United States Oil Fund was down 0.05% to $38.99 with the United States Natural Gas Fund was up 0.12% to $25.83. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was up 3.24% to 25.55 while SPDR Gold Shares were up 1.91% to $125.01. The iShares Silver Trust was up 2.53% to $19.55.

Here's where the U.S. markets stand at mid-day:

NYSE Composite Index up 12.20 (+0.11%) to 10,987.74

Dow Jones Industrial Average down 28.58 (-0.17%) to 16,878.04

S&P 500 down 1.84 (-0.09%) to 1,955.14

Nasdaq Composite Index down 10.92 (-0.25%) to 4,351.92

GLOBAL SENTIMENT

Nikkei 225 Index up 1.62%

Hang Seng Index down 0.06%

Shanghai China Composite Index down 1.55%

FTSE 100 Index up 0.44%

CAC 40 up 0.72%

DAX up 0.74%

NYSE SECTOR INDICES

NYSE Energy Sector Index up 0.04%

NYSE Financial Sector Index down 0.17%

NYSE Healthcare Sector Index up 0.21%

UPSIDE MOVERS

(+) BBRY, BB.TO (+12.48%) Reported a narrower than expected loss.

(+) CNL (+6.11%) Rumors of buyout increase after the firm hires Goldman Sachs.

(+) BIND (+6.10%) Forms research agreement with Roche to discover novel nanomedicines .

DOWNSIDE MOVERS

(-) COCO (-62.69%) Discloses concerns about cash flow.

(-) KBR (-946%) Swings to a Q1 net loss, missing analyst estimates.

(-) PIR (-13.20%) Missed Q1 earnings estimates, reduces FY15 earnings target.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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