Stocks Close Mixed Following Lackluster Trading Session - U.S. Commentary

(RTTNews) - After moving notably higher over the two previous sessions, stocks showed a lack of direction throughout the trading day on Thursday. Despite the choppy trading on the day, the Dow still ended the session at a new record closing high.

The major averages eventually ended the day mixed. While the Dow rose 32.40 points or 0.2 percent to 20,100.91, the Nasdaq edged down 1.16 points or less than a tenth of a percent to 5,655.18 and the S&P 500 dipped 1.69 points or 0.1 percent to 2,296.68.

The lackluster performance on Wall Street came as traders seemed reluctant to make significant moves after yesterday's gains lifted the Dow above 20,000 for the first time.

Traders were also digesting the latest batch of earnings news from big-name companies such as AT&T (T), Ford (F), Comcast (CMCSA) and Caterpillar (CAT).

AT&T reported fourth quarter earnings that met analyst estimates, although the telecom giant reported weaker than expected revenues.

Auto giant Ford reported fourth quarter adjusted earnings that matched analyst estimates on better than expected revenues.

Comcast reported fourth quarter results that exceeded analyst estimates. The company also announced a two-for-one stock split, raised its dividend by 15 percent, and increased its stock repurchase program authorization to $12 billion.

Heavy equipment maker Caterpillar reported better than expected fourth quarter earnings but provided disappointing guidance.

On the U.S. economic front, the Labor Department released a report showing a bigger than expected rebound in initial jobless claims in the week ended January 21st.

The report said initial jobless claims climbed to 259,000, an increase of 22,000 from the previous week's revised level of 237,000. Economists had expected jobless claims to rise to 247,000.

A separate report from the Commerce Department showed a sharp pullback in new home sales in the month of December, with sales falling to a ten-month low.

The Commerce Department said new home sales tumbled by 10.4 percent to an annual rate of 536,000 in December after jumping by 4.7 percent to a revised rate of 598,000 in November.

Sector News

Many of the major sectors ended the day showing only modest moves, although substantial weakness was visible among gold stocks. Reflecting the weakness in the gold sector, the NYSE Arca Gold Bugs Index slumped by 2.6 percent.

The drop by gold stocks came amid a decrease by the price of the precious metal, with gold for February delivery sliding $8 to $1,189.80 an ounce.

Oil service stocks also came under pressure despite a jump by the price of crude oil, resulting in a 2.3 percent decline by the Philadelphia Oil Service Index.

Meanwhile, airline stocks showed a strong move to the upside over the course of the session, driving the NYSE Arca Airline Index up by 1.3 percent.

Southwest Airlines (LUV) posted a standout gain reporting fourth quarter earnings and revenues that exceeded expectations.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved to the upside during trading on Thursday. Japan's Nikkei 225 Index spiked by 1.8 percent, while Hong Kong's Hang Seng Index jumped by 1.4 percent.

Meanwhile, the major European markets turned in a mixed performance on the day. While the German DAX Index rose by 0.4 percent, the French CAC 40 edged down by 0.2 percent and the U.K.'s FTSE 100 Index closed just below the unchanged line.

In the bond market, treasuries moved modestly higher over the course of the session after seeing early weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.5 basis points to 2.508 percent.

Looking Ahead

Earnings news may continue to attract attention on Friday, with a slew of well known companies due to report their quarterly results.

Google parent Alphabet (GOOGL), Intel (INTC), and Microsoft (MSFT) are among the companies releasing their results after the close of today's trading.

Additionally, American Airlines (AAL), Chevron (CVX), and Honeywell (HON) are due to report their results before the start of trading on Friday.

Traders are also likely to keep an eye on the day's economic data, with reports on durable goods orders, fourth quarter GDP, and consumer sentiment potentially impacting the markets.