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U.S. Stocks Little Changed Following Mixed Earnings News

wallstreet4 061518 14jan20 lt

Stocks have shown a lack of direction over the course of morning trading on Tuesday after yesterday's advance lifted the Nasdaq and the S&P 500 to new record closing highs. The major averages have spent most of the morning lingering near the unchanged line.

Currently, the major averages are turning in a mixed performance. While the Dow is up 30.02 points or 0.1 percent at 28,937.07, the Nasdaq is down 8.18 points or 0.1 percent at 9,265.76 and the S&P 500 is down 2.86 points or 0.1 percent at 3,285.27.

The choppy trading on Wall Street comes as traders seem reluctant to make significant moves as they digest quarterly results from several big-name financial companies.

Shares of JPMorgan Chase (JPM) are seeing significant strength after the financial giant reported better than expected fourth quarter results.

Citigroup (C) has also shown a strong move to the upside after reporting fourth quarter results that beat analyst estimates on both the top and bottom lines.

On the other hand, shares of Wells Fargo (WFC) have come under pressure after the banking giant reported fourth quarter results that missed expectations.

Financial giants Bank of America (BAC), Goldman Sachs (GS), and Morgan Stanley (MS) are also due to report their quarterly results in the coming days as earnings season picks up steam.

In U.S. economic news, the Labor Department released a report showing consumer prices in the U.S. increased by slightly less than anticipated in the month of December.

The Labor Department said its consumer price index rose by 0.2 percent in December after climbing by 0.3 percent in November. Economists had been expecting another 0.3 percent increase.

Excluding food and energy prices, core consumer prices inched up by 0.1 percent in December after rising by 0.2 percent in November. Core prices had been expected to rise by another 0.2 percent.

Later this week, traders are likely to keep a close eye on reports on retail sales, housing starts, and industrial production.

Most of the major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.

Oil service stocks are seeing notable weakness, however, with the Philadelphia Oil Service Index sliding by 1 percent. The weakness in the sector comes despite a modest increase by the price of crude oil.

On the other hand, biotechnology stocks are rebounding after bucking the uptrend in the previous session, driving the NYSE Arca Biotechnology Index up by 1 percent.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index climbed by 0.7 percent, while China's Shanghai Composite Index dipped by 0.3 percent.

Meanwhile, the major European markets are turning in a lackluster performance on the day. While the U.K.'s FTSE 100 Index is up by 0.1 percent, the German DAX Index and the French CAC 40 Index are both nearly unchanged.

In the bond market, treasuries have moved back to the upside following the pullback seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.1 basis points at 1.827 percent.

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