Nasdaq Reaches New Record High Despite Choppy Trading - U.S. Commentary

(RTTNews) - Stocks showed a lack of direction over the course of the trading session on Thursday as traders kept an eye on developments on Capitol Hill. Despite the choppy trading, the tech-heavy Nasdaq climbed to a new record closing high.

The major averages all closed in positive territory, although the Nasdaq outperformed its counterparts. While the Nasdaq rose 24.38 points or 0.4 percent to 6,321.76, the Dow edged up 8.84 points or less than 0.1 percent to 21,182.53 and the S&P 500 crept up 0.65 points or less than 0.1 percent to 2,433.79.

The lackluster performance on Wall Street came as traders focused on former FBI Director James Comey's testimony before the Senate Intelligence Committee.

The questioning of Comey came after his statement released by the committee on Wednesday appeared to confirm some recent reports about his interactions with Trump.

The statement included details of a conversation during which Trump seemed to ask Comey to drop an investigation of former National Security Adviser Michael Flynn's contact with Russian officials.

"I hope you can see your way clear to letting this go, to letting Flynn go. He is a good guy. I hope you can let this go," Trump said, according to Comey.

Comey told the committee he took the comment from Trump as a directive but said the determination of whether the request amounted to obstruction of justice would be up to Special Counsel Robert Mueller.

However, Trump's personal attorney Marc Kasowitz rejected many of Comey's claims, denying the allegation that the president called for an end of the investigation of Flynn.

The European Central Bank announced its latest monetary policy decision earlier in the day, with the ECB leaving its benchmark interest rate unchanged.

The ECB said interest rates are expected to remain at their present levels for an extended period of time but dropped any reference to a future rate cut.

In his subsequent statement, ECB President Mario Draghi lowered the outlook for euro area inflation, citing lower oil prices.

The general election in the U.K. also attracted attention, although the outcome will not be known until later in the day.

Sector News

Steel stocks moved sharply higher over the course of the trading session, driving the NYSE Arca Steel Index up by 2.9 percent. Ryerson (RYI) and Olympic Steel (ZEUS) posted standout gains.

The strength among steel stocks came as comments from Commerce Secretary Wilbur Ross suggested the administration is preparing new steel import restrictions.

Considerable strength was also visible among financial stocks, with the Dow Jones Banks Index and the NYSE Arca Broker/Dealer Index climbing by 1.7 percent and 1.4 percent, respectively.

Semiconductor, computer hardware, and internet stocks also saw notable strength, helping to lift the tech-heavy Nasdaq to a new record closing high.

On the other hand, gold stocks showed a substantial move to the downside, dragging the NYSE Arca Gold Bugs Index down by 1.8 percent. The index continued to give back ground after reaching its best closing level in over a month on Tuesday.

The weakness among gold stocks came amid a steep drop by the price of the precious metal, with gold for August delivery tumbling $13.70 to $1,279.50 an ounce.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in yet another mixed performance on Thursday. Japan's Nikkei 225 Index fell by 0.4 percent, while Hong Kong's Hang Seng Index rose by 0.3 percent.

The major European markets also ended the day mixed. While the German DAX Index climbed by 0.3 percent, the French CAC 40 Index closed just below the unchanged line and the U.K.'s FTSE 100 Index slid by 0.4 percent.

In the bond market, treasuries extended the pullback seen over the course of the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged up by 1.6 basis points to 2.194 percent.

Looking Ahead

Results of the U.K. election may impact trading on Friday, while traders are likely to shrug off a report on wholesale inventories in the month of April.