With traders digesting a mixed batch of earnings and economic news, stocks have moved in opposite directions over the course of the trading day on Thursday. After showing a notable move to the upside in early trading, the major averages have turned mixed on the day.
The major averages have moved roughly sideways in recent trading, stuck on opposite of sides of the unchanged line. While the Dow is up 17.93 points or 0.1 percent at 12,774.89, the Nasdaq is down 7.16 points or 0.3 percent at 2,811.15 and the S&P 500 is down 3.52 points or 0.3 percent at 1,322.53.
The early strength on Wall Street came as traders continued to react positively to Wednesday's statement from the Federal Reserve indicating that the central bank expects to keep interest rates at exceptionally low levels at least through late 2014.
An upbeat report from the Commerce Department also contributed to the early buying interest, with the report showing a bigger than expected increase in durable goods orders in the month of December.
The report showed that durable goods orders increased by 3.0 percent in December compared to a revised 4.3 percent increase in November. Economists had expected orders to increase by about 2.2 percent.
However, a report from the Labor Department showing that initial jobless claims rebounded by a little more than anticipated in the week ended January 21st helped to limit the upside for the markets.
The Labor Department said jobless claims rose to 377,000 from the previous week's revised figure of 356,000, while economists had expected jobless claims to increase to 370,000.
A separate report from the Commerce Department showing an unexpected drop in new home sales contributed to the subsequent pullback by the markets.
The report showed that new home sales fell 2.2 percent to an annual rate of 307,000 in December from the revised November rate of 314,000. The drop surprised economists, who had expected new home sales to increase to an annual rate of 320,000.
Among individual stocks, shares of Caterpillar (CAT) are up by 2.7 percent after the construction equipment manufacturer reported stronger than expected fourth quarter earnings growth.
Diversified manufacturer 3M (MMM) is also trading higher after reporting better than expected fourth quarter results.
Meanwhile, shares of AT&T (T) are down by 2.2 percent after the telecom giant reported slightly weaker than expected fourth quarter adjusted earnings despite seeing stronger than expected revenue growth.
Sector News
While most of the major sectors are showing only modest moves, significant strength remains visible among airline stocks. Reflecting the strength in the airline sector, the NYSE Arca Airline Index is up by 2.5 percent after reaching a six-month intraday high.
Republic Airways (RJET) is turning in one of the airline sector's best performances, jumping by 15.2 percent after boosting is fourth quarter guidance.
Gold stocks are also seeing continued strength, moving higher along with the price of the precious metal. With gold for February delivery climbing $24.70 to $1,724.80 an ounce, the NYSE Arca Gold Bugs Index is up by 1.7 percent.
On the other hand, health insurance stocks have come under considerable selling pressure, dragging the Morgan Stanley Healthcare Payor Index down by 1.5 percent. With the loss, the index is pulling back further off the record closing high it set earlier this month.
Electronic storage, natural gas, financial, and housing stocks are also seeing notable weakness on the day, giving back some ground following recent strength.
Other Markets
In overseas trading, stock markets in the Asia-Pacific region turned in a mixed performance on Thursday, although several markets were closed for public holidays. While Japan's Nikkei 225 Index ended the day down by 0.4 percent, Hong Kong's Hang Seng Index jumped by 1.6 percent.
Meanwhile, the major European markets all showed notable moves to the upside on the day. The German DAX Index surged up by 1.8 percent, the French CAC 40 Index soared by 1.5 percent, and the U.K.'s FTSE 100 Index advanced by 1.3 percent.
In the bond market, treasuries are seeing continued strength, extending the upward move seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 5.1 basis points at 1.956 percent.
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Market Analysis
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.