Stocks continue to show a lack of direction in mid-afternoon trading on Tuesday, as benign economic data has some traders remaining on the sidelines awaiting more meaningful catalysts. The major averages have been swinging between gains and losses over the course of the session.
This morning's batch of economic data has seen little reaction in the broader markets, with the Labor Department reporting a modest increase in producer prices in October, although core prices unexpectedly showed a moderate decline.
Separately, the Federal Reserve said that industrial production increased by less than expected in the month of October, with the report also showing a slightly smaller than expected increase in capacity utilization.
Earlier, consumer discretionary stocks saw some downside amid disappointing guidance from some key retailers, including Pacific Sunwear (PSUN), Home Depot (HD) and Target (TGT).
The major averages currently continue to see choppy trading, lingering near the unchanged mark. While the Dow is currently up 3.02 at 10,409.98, the Nasdaq is down 0.30 at 2,197.55 and the S&P 500 is down 2.03 at 1,107.27.
Dow Components
A slim majority of the Dow components are moving higher in mid-afternoon trading, contributing to the modest gain being shown by the blue chip index.
Microsoft (MSFT) is the Dow's leading percentage gainer, advancing by 1.8 percent. The stock is poised to end the session at its best closing price in roughly eighteen months.
Wal-Mart (WMT) and Merck (MRK) are also on the rise, advancing by 0.8 percent and 1.2 percent, respectively. Wal-Mart is on pace to close at its highest level in seven and a half months, while Merck is looking to set a fresh yearly high.
Cisco (CSCO), Exxon Mobil (XOM) and DuPont (DD) are also moving higher, while Home Depot is posting the sharpest percentage loss in the Dow, down by 3.2 percent. The stock is backing off of the nearly two-month closing high reached in yesterday's session.
Caterpillar (CAT) and McDonald's (MCD) are also retreating, sliding by 1.6 percent and 1.3 percent, respectively, pulling off of their best levels in over a year.
Sector News
Chemical stocks are showing considerable strength in mid-afternoon trading, with the S&P Chemical Index currently up 1 percent. With the gain, the index is poised for its best closing level in over a year.
Dow Chemical (DOW) is one of the sector's best performers, advancing by 1.7 percent. The stock is also looking to set a fresh yearly high.
While some banking and telecommunication stocks are also advancing, retail stocks continue to see some of the day's steepest losses, with the S&P Retail Index falling by 1.9 percent. The index is pulling back further off the more than one-year closing high set in the previous session.
Housing, brokerage and biotechnology stocks are also moving to the downside, although by more modest margins.
In Focus: Economic Data, Earnings News
As mentioned above, the Labor Department released a report showing that its producer price index rose 0.3 percent in October following an unrevised 0.6 percent decrease in September. Economists had been expecting prices to increase by a somewhat more significant 0.5 percent.
At the same time, core producer prices, which exclude food and energy prices, fell 0.6 percent in October after slipping by 0.1 percent in the previous month. The decrease came as a surprise to economists, who had expected core prices to edge up by 0.1 percent.
Separately, the Federal Reserve released a report showing that industrial production edged up by 0.1 percent in October following a revised 0.6 percent increase in September. Economists had expected production to increase by 0.4 percent compared to the 0.7 percent growth originally reported for the previous month.
Additionally, the Fed said that capacity utilization rose to 70.7 percent in October from an unrevised 70.5 percent in September. The increase was slightly smaller than the expectations of economists, who expected capacity utilization to increase to 70.8 percent.
In earnings news, Home Depot reported third-quarter net earnings of $0.41 per share, topping the expected $0.36 per share. Net sales for the third quarter totaled $16.4 billion, down 8.0 percent from the previous year quarter but still above the consensus forecast of $16.27 billion. While the company also raised its full year earnings guidance, it left its revenue guidance unchanged.
Target revealed that its third quarter net income rose to $0.58 per share, beating the Wall Street forecast of $0.50 per share for the quarter. Total revenues were also able to best estimates, coming in at $15.28 billion.
However, Target said it remains cautious about the fourth quarter due to the current and projected economic environment and expectations for a highly promotional holiday season.
Meanwhile, retailers Saks (SKS) and Dillard's (DDS) also recently reported their third quarter results, with both companies unexpected reporting a quarterly profit compared to a loss in the year-ago quarter. Subsequently, shares of Both Saks and Dillard's are showing notable strength in early afternoon trading.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region closed mostly lower on Tuesday. Japan's benchmark Nikkei 225 Index fell by 0.6 percent, while Hong Kong's Hang Seng Index edged down by 0.1 percent.
The major European markets also ended the day on the downside, with the U.K.'s FTSE 100 Index and the French CAC 40 Index slipping by 0.7 percent and 0.9 percent, respectively, while the German DAX Index fell by 0.5 percent.
In the bond markets, treasuries are little changed, with the yield on the benchmark ten-year note sitting at 3.334 percent.
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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.