Stocks continue to linger in negative territory in mid-afternoon trading on Friday, as profit taking combined with overseas inflation and credit concerns have generated some selling pressure. The major averages remain lower, with the Dow poised to snap an eight-session winning streak.
With a light day on the economic front, news from the Reserve Bank of India has grabbed market attention, as the institution announced that it is raising its key interest rates by 25 basis points to battle inflation, which reached a sixteen-month high according to data released earlier in the week.
The Indian central bank raised rates to 3.5 percent from a record low of 3.25 percent, the first rate hike since July of 2008.
Back in the U.S., healthcare reform has remained a key market overhang, as the House of Representatives is poised to take a crucial vote on the legislation over the weekend.
Earlier, President Barack Obama held a campaign-style rally hoping to show wavering lawmakers the popularity of the proposal. The deciding vote on healthcare reform is scheduled for Sunday.
Corporate news has also been in focus today, with a Chinese newspaper has reporting that Google Inc. (GOOG) has decided to cease operations in China beginning in early April. The web giant is expected to make the announcement on Monday.
Also on the corporate front, uniforms and business services provider Cintas Corp. (CTAS) posted third quarter net income of $0.32 per share, topping Wall Street expectations for $0.30 per share. Revenues for the third quarter totaled $861.8 million, also beating projections.
The major averages have continued to see choppy movement in recent trading but are off of their session lows. The Dow is down 47.31 points or 0.4 percent at 10,731.86, the Nasdaq is down 19.10 points or 0.8 percent at 2,372.18 and the S&P 500 is down 6.29 points or 0.5 percent at 1,159.53.
Dow Components
A majority of the Dow components are in the red, contributing to the pullback by the blue chip index.
3M (MMM) is turning in one of the Dow's worst performances, falling by 2 percent. The decline is taking the stock away from yesterday's nearly two-month closing high.
Pfizer (PFE) is also moving lower, falling by 1.5 percent. Shares of the drug maker are poised to set a four and a half month closing low.
American Express (AXP), Intel (INTC) and Wal-Mart (WMT) are also under pressure, while gains by Coca-Cola (KO), Boeing (BA) and United Technologies (UTX) are liming the downside for the Dow, rising by at least one percent.
Sector News
Airline and computer hardware stocks remain some of the day's worst performers, with the NYSE Arca Airlines Index and the NYSE Arca Computer Hardware Index sliding by 2.9 percent and 3.3 percent, respectively, partially offsetting recent gains.
Housing stocks are also giving back some of their recent upside, with the Philadelphia Housing Sector Index declining by 1.5 percent. The retreat is pulling the index further away from Wednesday's six and a half month closing high.
Oil service, transportation, commercial real estate and networking stocks are also under pressure, reflecting the day's broad based weakness.
On the other hand, health insurance stocks continue to post strong gains ahead of this weekend's vote on the healthcare reform bill. The Morgan Stanley Healthcare Payor Index is currently up by 2.4 percent after setting a fresh two-month intraday high in earlier dealing.
Other Markets
Overseas, stock markets across the Asia-Pacific region closed higher on Friday. Japan's benchmark Nikkei 225 Index closed up by 0.8 percent, while Hong Kong's Hang Seng Index edged up by 0.2 percent.
Meanwhile, the major European markets finished the day on opposite sides of the unchanged line. While the U.K.'s FTSE 100 Index gained 0.1 percent, the French CAC 40 Index and the German DAX Index fell by 0.3 percent and 0.5 percent, respectively.
In the bond markets, treasuries are modestly higher. Subsequently, the yield on the benchmark ten-year note is currently trading at 3.66 percent, posting a loss of just under one basis point.
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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.