U.S. Stocks Little Changed Following Yesterday's Downturn

(RTTNews) - Stocks have shown a lack of direction over the course of the trading day on Friday, with the major averages bouncing back and forth across the unchanged line following the downturn seen over the course of the previous sessions.

Currently, the major averages are narrowly mixed. While the Nasdaq is down 14.89 points or 0.1 percent at 22,547.65, the S&P 500 is up 1.91 points or less than a tenth of a percent at 6,630.98 and the Dow is up 87.89 points or 0.2 percent at 46,040.13.

The choppy trading on Wall Street comes amid uncertainty about the bank credit concerns that emerged during Thursday's session.

Shares of Jefferies (JEF) are surging by 7.0 percent on the day after Oppenheimer upgraded its rating on the investment bank to Outperform from Perform.

While Jefferies had plunged more than 10 percent on Thursday amid concerns about its exposure to bankrupt auto parts company First Brands, Oppenheimer said its exposure is "very limited."

Zions Bancorp (ZION), which helped lead the downturn on Thursday, has also shot up by 5.3 percent after Robert W. Baird upgraded its rating on the regional bank to Outperform from Neutral.

Banks like Truist Financial (TFC), Fifth Third (FITB) and Huntington Bancshares (HBAN) have also moved to the upside after reporting better than expected quarterly earnings.

Credit card giant American Express (AXP) has also jumped by 4.5 percent after reporting third quarter results that exceeded analyst estimates and raising its full-year guidance.

However, overall trading activity appears somewhat subdued amid another quiet day on the U.S. economic front due to the ongoing government shutdown.

Traders may also be reluctant to make significant moves as they keep an eye on the latest developments regarding the trade dispute between the U.S. and China.

In an interview with Fox Business this morning, President Donald Trump said the high tariffs he has threatened on Chinese imports are "probably not [sustainable]" but argued "they forced me to do that."

Sector News

Reflecting the lackluster performance by the broader markets, most of the major sectors are showing only modest moves on the day.

Substantial weakness is visible among gold stocks, however, with the NYSE Arca Gold Bugs Index plunging by 6.3 percent after ending the previous session at a record closing high.

The sell-off by gold stocks comes as the price of the precious metal has pulled back sharply after soaring to record highs in recent sessions.

Networking, oil service and pharmaceutical stocks are also seeing some weakness on the day, although selling pressure appears somewhat subdued.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index tumbled by 1.4 percent, while China's Shanghai Composite Index plunged by 2.0 percent.

Most European stocks have also moved to the downside. The German DAX Index is down by 1.2 percent and the U.K.'s FTSE 100 Index is down by 0.6 percent, although the French CAC 40 Index has bucked the downtrend and risen by 0.3 percent.

In the bond market, treasuries are giving back ground after yesterday's advance. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.7 basis points at 4.013 percent.