Stocks Continue To Show A Lack Of Direction In Mid-Day Trading - U.S. Commentary

(RTTNews) - With traders digesting a mixed batch of earnings news, stocks are turning in another lackluster performance during trading on Wednesday. The choppy trading extends the trend seen over the past several sessions.

The major averages currently continue to turn in a mixed performance, with the Nasdaq posting a modest gain. While the Nasdaq is up 10.73 points or 0.3 percent at 4,236.49, the Dow is down 57.28 points or 0.4 percent at 16,357.16 and the S&P 500 is down 1.19 points or 0.1 percent at 1,842.61.

The lack of direction being shown by stocks comes as traders focus on the latest earnings news amid another quiet day on the U.S. economic front.

Tech giant and Dow component IBM (IBM) has come under pressure after reporting fourth quarter earnings that beat analyst estimates but on weaker than expected revenues.

IBM reported revenues that fell year-over-year due in part to a drop in demand from emerging markets such as China, although the company still forecast 2014 earnings above analyst estimates.

Shares of Advanced Micro Devices (AMD) have also fallen sharply after the chipmaker reported fourth quarter results that exceeded analyst estimates but forecast a drop in first quarter revenues.

Meanwhile, United Technologies (UTX) has moved higher after reporting better than expected fourth quarter earnings. The diversified manufacturer also reaffirmed its 2014 guidance.

Voice and language technology company Nuance Communications (NUAN) is moving sharply higher after raising its first quarter guidance.

Sector News

While most of the major sectors are showing only modest moves, considerable strength is visible among railroad stocks. Reflecting the strength in the railroad sector, the Dow Jones Railroad Index has advanced by 1.4 percent.

Norfolk Southern (NSC) has helped to lead the railroad sector higher, jumping by 5.6 percent after reporting better than expected fourth quarter results.

Natural gas stocks are also turning in a strong performance on the day, moving higher along with the price of natural gas. With natural gas for February delivery climbing $0.181 to $4.612 per million BTUs, the NYSE Arca Natural Gas Index is up by 1.2 percent.

Airline and housing stocks are also seeing notable strength in mid-day trading, with the NYSE Arca Airline Index and the Philadelphia Housing Sector Index up by 1.2 percent and 1.1 percent, respectively.

Meanwhile, gold stocks have come under significant selling pressure, dragging the NYSE Arca Gold Bugs Index down by 2 percent. The weakness among gold stocks comes amid a modest decrease by the price of the precious metal.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index edged up by 0.2 percent, while China's Shanghai Composite Index jumped by 2.2 percent.

Meanwhile, the major European markets ended the day roughly flat. While the French CAC 40 Index closed just above the unchanged line, U.K.'s FTSE 100 Index and the German DAX Index both edged down by 0.1 percent.

In the bond market, treasuries are seeing modest weakness after ending the previous session nearly unchanged. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.5 basis points at 2.84 percent.