WASHINGTON (dpa-AFX) - Stocks are seeing continued weakness in mid-day trading on Friday after coming under pressure early in the session. The major averages remain in negative territory after reaching record intraday highs in early trading.
Currently, the major averages are off their lows of the session but still in the red. The Dow is down 178.95 points or 0.6 percent at 30,124.42, the Nasdaq is down 34.53 points or 0.3 percent at 12,730.21 and the S&P 500 is up 21.21 points or 0.6 percent at 3,701.27.
The pullback on Wall Street partly reflects profit taking, as traders cash in on recent gains after yesterday's climb to record closing highs.
Optimism about a new fiscal stimulus bill contributed to the strength on Thursday, although traders may be waiting for more concrete developments before continuing to push stocks higher.
In remarks on the Senate floor, Senate Majority Leader Mitch McConnell, R-Ken., said an agreement on a new relief package appears to be 'close at hand' and suggested lawmakers are likely to work through the weekend to reach a deal.
House Speaker Nancy Pelosi, D-Calif., also told reporters that progress has been toward an agreement, mirroring other recent optimistic comments from congressional leaders.
Upbeat news on the coronavirus vaccine front has helped limit the downside for the markets, with an FDA advisory panel giving a positive recommendation to Moderna's (MRNA) vaccine candidate.
Additionally, Johnson & Johnson (JNJ) said the first late-stage trial for its vaccine candidate is now fully enrolled, with the healthcare giant expecting interim data by late January.
On the U.S. economic front, a report released by the Conference Board showed its index of leading U.S. economic indicators increased by slightly more than expected in the month of November.
The Conference Board said its leading economic index rose by 0.6 percent in November after climbing by 0.8 percent in October. Economists had expected the index to increase by 0.5 percent.
'The US LEI continued rising in November, but its pace of improvement has been decelerating in recent months, suggesting a significant moderation in growth as the US economy heads into 2021,' said Ataman Ozyildirim, Senior Director of Economic Research at The Conference Board.
Sector News
Oil service stocks have shown a significant move to the downside on the day, dragging the Philadelphia Oil Service Index down by 1.8 percent.
The weakness among oil service stocks comes despite an increase by the price of crude oil, with crude for January delivery climbing $0.69 to $49.05 a barrel.
Considerable weakness has also emerged among commercial real estate stocks, as reflected by the 1.2 percent drop by the Dow Jones U.S. Real Estate Index.
Airline and banking stocks are also seeing notable weakness in mid-day trading, while networking stocks have moved sharply higher on the day.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index edged down by 0.2 percent, while China's Shanghai Composite Index slipped by 0.3 percent.
The major European markets also showed modest moves to the downside on the day. While the French CAC 40 Index fell by 0.4 percent, the U.K.'s FTSE 100 Index and the German DAX Index both dipped by 0.3 percent.
In the bond market, treasuries are showing a lack of direction after ending the previous session slightly lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 0.938 percent.
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