WASHINGTON (dpa-AFX) - Stocks continue to turn in a lackluster performance in mid-day trading on Wednesday after showing a lack of direction earlier in the session. The major averages have spent the day bouncing back and forth across the unchanged line.
Currently, the major averages continue to turn in a mixed performance. While the Dow is down 17.47 points or 0.1 percent at 26,272.51, the Nasdaq is up 54.67 points or 0.6 percent at 9,950.54 and the S&P 500 is up 2.78 points or 0.1 percent at 3,127.52.
The advance by the tech-heavy Nasdaq is partly due to strong gain by big-name tech stocks, with shares of Netflix (NFLX) surging up by 2.7 percent.
Amazon (AMZN) is also posting a notable gain after Needham initiated coverage of the online retail giant with a Buy rating, while Apple (AAPL) has reached a new record intraday high.
The lackluster performance by the broader markets comes as traders pause to digest the volatility seen in the markets over the past few weeks.
Stocks showed a strong move to the upside earlier this month, with the tech-heavy Nasdaq hitting a new record high and the Dow and the S&P 500 reaching their best levels in over three months.
Profit taking contributed to a sharp pullback by the markets last week, although the upward move seen over the three previous sessions largely offset the drop.
Traders are also weighing recent data pointing to a quick economic recovery against reports showing a spike in new coronavirus cases and hospitalizations in a number of southern states.
In congressional testimony on Tuesday, Federal Reserve Chair Jerome Powell warned that there continues to be significant uncertainty about the economic outlook.
'Much of that economic uncertainty comes from uncertainty about the path of the disease and the effects of measures to contain it,' Powell said. 'Until the public is confident that the disease is contained, a full recovery is unlikely.'
Federal Reserve Chair Jerome Powell recently began his second day of virtual testimony on Capitol Hill, appearing before the House Financial Services Committee.
Powell's prepared remarks are likely to mirror those he delivered before the Senate Banking Committee, although traders will still keep an eye on the question-and-answer portion of his testimony.
On the U.S. economic front, the Commerce Department released a report showing a notable rebound in new residential construction in May, although housing starts still came in well below economist estimates.
The report said housing starts jumped by 4.3 percent to an annual rate of 974,000 in May after plummeting by 26.4 percent to a revised rate of 934,000 in April.
Economists had expected housing starts to soar by 22.9 percent to a rate of 1.095 million from the 891,000 originally reported for the previous month.
Meanwhile, the Commerce Department said building permits spiked by 14.4 percent to an annual rate of 1.220 million in May after plunging by 21.4 percent to a revised rate of 1.066 million in April.
Building permits, an indicator of future housing demand, had been expected to surge up by 14.3 percent to a rate of 1.228 million from the 1.074 million originally reported for the previous month.
Sector News
Most of the major sectors continue to show only modest moves on the day, although significant weakness remains visible among energy stocks.
The weakness in the energy sector comes amid a decrease by the price of crude oil, with crude for July delivery sliding $0.47 to $37.91 a barrel.
Reflecting the weakness in the sector, the Philadelphia Oil Service Index is down by 2.5 percent, the NYSE Arca Oil Index is down by 2.4 percent and the NYSE Arca Natural Gas Index is down by 1.5 percent.
Telecom and steel stocks are also seeing considerable weakness on the day, while gold stocks have moved higher despite a decrease by the price of the precious metal.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Wednesday, although Japan's Nikkei 225 Index bucked the uptrend and slid by 0.6 percent. China's Shanghai Composite Index inched up by 0.1 percent, while Hong Kong's Hang Seng Index climbed by 0.6 percent.
The major European markets also moved to the upside over the course of the day. While the French CAC 40 Index advanced by 0.9 percent, the German DAX Index rose by 0.5 percent and the U.K.'s FTSE 100 Index inched up by 0.2 percent.
In the bond market, treasuries have pulled back off their best levels but continue to see modest strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.1 basis points at 0.745 percent.
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