Stocks are showing a lack of conviction in early afternoon trading on Wednesday, as another quiet day on the economic calendar is contributing to the lack of significant movement in the equity markets. The major averages have been bouncing back and forth across the unchanged line.
Amid limited news on the economic front today, President Barack Obama is delivering remarks regarding the economy and the condition of the battered labor market.
Earlier, a report released by the Commerce Department showed that wholesale inventories unexpectedly rose in the month of October. The report also showed another notable increase in wholesale sales.
The healthcare sector is in the spotlight following reports stating that a broad agreement has been reached among the Democratic Party healthcare negotiators on a new health plan put forward to replace the government-run insurance option with a scaled-back non-profit plan.
Traders are also digesting the comments of a panel set up by Congress to oversee the Troubled Asset Relief Program or TARP released today. As per the report, the $700 billion bailout did succeed in preventing an all-out panic earlier in the year but fell short of many targets set by the Congress.
On a related note, Treasury Secretary Timothy Geithner revealed that the TARP program is being extended to October 2010, in a letter sent to House and Senate leaders earlier today.
Geithner said the move was "necessary to assist American families and stabilize financial markets because it will, among other things, enable us to continue to implement programs that address housing markets and the needs of small businesses, and to maintain the capacity to respond to unforeseen threats."
The major averages are currently turning in a mixed performance, with the Dow currently posting a modest gain. While the Dow is up 5.29 at 10,291.26, the Nasdaq is down 5.83 at 2,167.16 and the S&P 500 is down 2.32 at 1,089.62.
Sector News
Despite the lack of conviction in the broader markets, gold stocks are on the rise after four straight sessions of substantial declines, with the NYSE Arca Gold Bugs Index currently up by 1.1 percent. With the move, the index is bouncing off of the one-month closing low set on Tuesday.
The move comes despite another pullback in the price of gold, which continues to retreat from last week's historic highs. The price of the precious metal is currently down by $9.60 at $1,133.80 per ounce.
Meanwhile, airline and healthcare provider stocks are continuing their disappointing performances, with the NYSE Arca Airline Index and the Morgan Stanley Healthcare Provider Index falling by 1.5 percent and 1.6 percent, respectively.
The airline index is falling further from the twenty-one month closing high set on Monday, while the healthcare provider index remains in a trading range.
Stocks In The News
Specialty retailer Men's Wearhouse (MW) is plunging after revealing that it expects to report a fourth-quarter loss, contrary to analysts' consensus estimate for a one-cent profit. The stock has dropped by 10.2 percent, falling to its lowest intraday price in roughly five months.
Photronics Inc. (PLAB) is also moving substantially lower after the firm forecast first quarter revenues below Wall Street estimates. Shares are currently down by 10.4 percent, pulling back off of Monday's one and a half month closing high.
On the other hand, Cooper Companies Inc. (COO) is showing a strong upward move after its fourth quarter earnings matched the consensus estimate. The company's 2010 earnings guidance also satisfied Wall Street. The stock is currently up 12.2 percent after reaching its best intraday level in fourteen months earlier in the session.
In Focus: Wholesale Trade Figures
As mentioned above, the Commerce Department reported that wholesale inventories increased by 0.3 percent in October following a revised 0.8 percent decrease in September. The increase surprised economists, who had expected inventories to fall 0.5 percent compared to the 0.9 percent drop originally reported for the previous month.
Additionally, the Commerce Department said that wholesale sales increased by 1.2 percent in October following an upwardly revised 1.3 percent increase in the previous month.
Other Markets
In overseas trading, stocks markets across the Asia-Pacific region closed mostly lower on Wednesday. Japan's benchmark Nikkei 225 Index fell by 1.3 percent, while Hong Kong's Hang Seng Index fell by 1.4 percent.
The major European markets saw moderate losses on the day. The U.K.'s FTSE 100 Index fell by 0.4 percent, while the German DAX Index and the French CAC 40 Index both dropped by 0.7 percent.
In the bond markets, treasuries are little changed ahead of the results of today's ten-year note auction. Subsequently, the yield on the benchmark ten-year note is holding at 3.395 percent, essentially unchanged on the day.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.