Stocks continue to turn in a lackluster performance in mid-day trading on Thursday, as traders have largely shrugged off the latest news out of Greece despite the intense focus on the debt-plagued nation over the past few days.
The major averages have moved to the upside in recent trading and are currently posting modest gains. The Dow is up 22.52 points or 0.2 percent at 12,906.47, the Nasdaq is up 10.23 points or 0.4 percent at 2,926.09 and the S&P 500 is up 2.44 points or 0.2 percent at 1,352.40.
The lack of direction being shown by stocks comes in spite of news that Greek political leaders have reached an agreement on austerity measures needed to secure a new bailout.
An agreement on austerity measures would move Greece a step closer to receiving a 130 billion euro bailout from the European Union and the International Monetary Fund, easing some of the concerns about the nation's ongoing going debt crisis.
However, traders seem skeptical about whether Greece will follow-through on the agreement and are subsequently staying on the sidelines.
The markets have also shrugged off the release of a report from the U.S. Labor Department showing a notable drop in initial jobless claims in the week ended February 4th.
The report showed that initial jobless claims fell to 358,000 from the previous week's revised figure of 373,000. Economists had been expecting jobless claims to edge up to 370,000 from the 367,000 originally reported for the previous week.
Peter Boockvar, equity strategist at Miller Tabak, said, "As seen with Friday's payroll figure, the labor market continues to improve but we all watch for its sustainability in light of growing overseas challenges."
Traders are also digesting monetary policy announcements out of Europe, with the European Central Bank and the Bank of England both keeping interest rates unchanged. However, the Bank of England said it has decided to pump an additional 50 billion pounds into the British economy.
In corporate news, networking giant Cisco Systems (CSCO) reported second quarter adjusted earnings of $0.47 per share, exceeding the $0.43 per share consensus estimate. The company's revenues were also ahead of estimates.
Credit card giant Visa (V) also reported better than expected first quarter results and raised its 2012 revenue growth guidance.
Sector News
Most of the major sectors are showing only modest moves in mid-day trading, reflecting the lack of direction being shown by the broader markets.
Nonetheless, significant strength is visible among tobacco stocks, with the NYSE Arca Tobacco Index up by 1.9 percent. With the gain, the index has reached a record intraday high.
Cigarette maker Lorillard (LO) is leading the tobacco sector higher, surging up by 12.4 percent after reporting better than expected quarterly results.
Housing, gold, and trucking stocks are also seeing moderate strength on the day, while weakness is visible among electronic storage, healthcare provider, and commercial real estate stocks.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a lackluster performance on Thursday, ending the day mixed. While Japan's Nikkei 225 Index slipped by 0.2 percent, China's Shanghai Composite Index edged up by 0.1 percent.
Meanwhile, the major European markets all moved to the upside on the day. The German DAX Index rose by 0.6 percent, while the French CAC 40 Index and the U.K.'s FTSE 100 Index closed up by 0.4 percent and 0.3 percent, respectively.
In the bond market, treasuries have shown a notable downward move amid the news out of Greece. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 7.4 basis points at 2.049 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.