Stocks Nearly Flat After Seeing Early Weakness - U.S. Commentary

(RTTNews) - After moving to the downside in early trading, stocks have regained some ground over the course of the trading day on Friday. The major averages have bounced well off their worst levels of the day, with the Dow and the Nasdaq climbing into positive territory.

Currently, the major averages are turning in a mixed performance. While the S&P 500 remains down 3.64 points or 0.2 percent at 2,093.81, the Dow is up 11.20 points or 0.1 percent at 17,996.97 and the Nasdaq is up 2.37 points or 0.1 percent at 4,927.07.

The lackluster performance being turned in recent trading reflects uncertainty about the situation in Greece, which continues to struggle to reach a new agreement with eurozone creditors.

Traders largely remain optimistic a deal will eventually be reached despite yesterday's news that Germany rejected Greece's proposal to extend its loan agreement for six months.

Nonetheless, some negative sentiment has been generated by reports indicating that a European Union official said reaching a deal tonight seems unlikely.

The longer the talks go on without a deal, the greater the concerns that Greece could exit from the eurozone, potentially destabilizing the currency bloc.

Trading activity has remained relatively subdued, however, with a lack of major U.S. economic data likely keeping some traders on the sidelines.

Among individual stocks, shares of Rocket Fuel (FUEL) have fallen sharply after the online advertising company reported a narrower than expected fourth quarter loss but provided disappointing guidance.

Restaurant chain Noodles & Co. (NDLS) is also posting a steep loss after reporting fourth quarter earnings and revenues that came in below analyst estimates.

On the other hand, shares of Intuit (INTU) have moved to the upside after the accounting software developer reported a narrower than expected second quarter loss.

Sector News

Despite the recovery by the broader markets, significant weakness remains visible among oil service stocks. Reflecting the continued weakness in the sector, the Philadelphia Oil Service Index is down by 1.3 percent.

The continued weakness among oil service stocks comes even though the price of crude oil has climbed off its lows and is now nearly flat.

Utilities stocks have also come under pressure on the day, dragging the Dow Jones Utilities Average down by 1.2 percent. The average is on pace to end the day at a three-month closing low.

On the other hand, gold stocks have moved notably higher on the day, driving the NYSE Arca Gold Bugs Index up by 1.6 percent. The gain by the index comes after it ended the previous session at its lowest closing level in a month.

The gains by gold stocks comes despite a pullback by the price of the precious metal, which is nearly flat are moving higher earlier in the day.

Other Markets

In overseas trading, many of the stocks markets across the Asia-Pacific region remained closed for Lunar New Year holidays on Friday. The markets there were open turned in a mixed performance. Japan's Nikkei 225 Index rose by 0.4 percent, while Australia's All Ordinaries Index fell by 0.4 percent.

The major European markets also ended the day mixed. While the French CAC 40 Index edged down by 0.1 percent, the U.K.'s FTSE 100 Index and the German DAX Index both rose by 0.4 percent.

In the bond market, treasuries have pulled back off their best levels but remain in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.8 basis points at 2.075 percent.