U.S. Stocks Move Mostly Lower Following Early Volatility

(RTTNews) - After showing a lack of direction earlier in the session, stocks have moved mostly lower over the course of the trading day on Friday. The major averages have all slid into negative territory after moving higher over the two previous sessions.

The major averages have climbed off their worst levels in recent trading but currently remain in the red. The Dow is down 105.10 points or 0.4 percent at 28,258.56, the Nasdaq is down 52.57 points or 0.5 percent at 11,453.43 and the S&P 500 is down 4.33 points or 0.1 percent at 3,449.16.

The weakness that has emerged on Wall Street comes amid a lack of concrete news regarding a new coronavirus stimulus bill.

Traders have generally remained optimistic that a bill will eventually be passed, although they may be growing tired of waiting.

House Speaker Nancy Pelosi has recently suggested negotiations with Treasury Secretary Steven Mnuchin are making progress, but it seems unlikely a bill will be passed before the elections early next month.

During the final presidential debate Thursday night, President Donald Trump accused Pelosi of stalling a new relief package until after the elections for political purposes.

Trump also claimed that he could get reluctant Senate Republicans to support a broader stimulus bill if an agreement is finally reached.

A steep drop by shares of Intel (INTC) is also weighing on the markets, with the semiconductor giant plunging by 11 percent.

Intel has come under pressure after reporting third quarter earnings that beat analyst estimates but on weaker than expected revenues for its Data Center Group.

Credit card giant American Express (AXP) has also shown a notable move to the downside after reporting third quarter earnings that missed expectations.

Sector News

Computer hardware stocks have shown a significant move to the downside on the day, dragging the NYSE Arca Computer Hardware Index down by 1.4 percent.

Seagate Technology (STX) is posting a notable loss after the data storage company reported fiscal first quarter earnings that beat estimates but on weaker than expected revenues.

Considerable weakness has also emerged among gold stocks, resulting in a 1.3 percent drop by the NYSE Arca Gold Bugs Index.

The weakness in the gold sector comes amid a downturn by the price of the precious metal, as gold for December delivery is sliding $5.70 to $1,898.90 an ounce after reaching a high of $1,917.30 an ounce.

On the other hand, steel stocks continue to turn in a strong performance, with the NYSE Arca Steel Index climbing by 1.3 percent to an eight-month intraday high.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index crept up by 0.2 percent, while China's Shanghai Composite Index slumped by 1 percent.

Meanwhile, the major European markets all moved to the upside on the day. While the German DAX Index climbed by 0.8 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index surged up by 1.2 percent and 1.3 percent, respectively.

In the bond market, treasuries have climbed back near the unchanged line after seeing initial weakness. 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 0.843 percent.

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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