U.S. Stocks Give Back Ground After Disappointing Consumer Data

(RTTNews) - After an initial move to the upside, stocks have given back ground over the course of the trading session on Friday. The major averages have pulled back off their highs of the session, with the tech-heavy Nasdaq leading the way lower.

Currently, the major averages are turning in a mixed performance. While the Dow is up 64.52 points or 0.2 percent at 33,695.66, the S&P 500 is down 11.08 points or 0.3 percent at 4,338.53 and the Nasdaq is down 112.52 points or 0.8 percent at 13,461.70.

The pullback on Wall Street came following the release of a report from the University of Michigan showing a slump in consumer sentiment and a surge in inflation expectations.

The University of Michigan said its consumer sentiment index tumbled to 63.0 in October from 68.1 in September, while economists had expected the index to edge down to 67.4.

"Assessments of personal finances declined about 15%, primarily on a substantial increase in concerns over inflation, and one-year expected business conditions plunged about 19%," said Surveys of Consumers Director Joanne Hsu.

The report also showed a sharp increase in year-ahead inflation expectations, which jumped to 3.8 percent in October from 3.2 percent in September, reaching the highest level since May.

Long-run inflation expectations also rose to 3.0 percent in October from 2.8 percent in September but remained within the narrow 2.9-3.1 percent range seen for 25 of the last 27 months.

The data has generated some negative sentiment, although a decrease in treasury yields has helped to limit the downside.

Traders have also reacted positively to earnings news from financial giants JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC).

Shares of JPMorgan Chase, Citigroup and Wells Fargo are also moving higher after the companies reported better than expected third quarter revenue.

Sector News

Semiconductor stocks have come under pressure over the course of the session, with the Philadelphia Semiconductor Index falling by 1.6 percent.

Notable weakness has also emerged among airline stocks, as reflected by the 1.3 percent drop by the NYSE Arca Airline Index.

Meanwhile, gold stocks have shown a substantial move to the upside on the day, resulting in a 5.0 percent spike by the NYSE Arca Gold Bugs Index.

The rally by gold stocks comes as the price of gold for December delivery is surging $49.20 or 2.6 percent to $1,932.20 an ounce.

A sharp increase by the price of crude oil is also contributing to strength among energy stocks, with the NYSE Arca Oil Index and the Philadelphia Oil Service Index jumping by 2.1 percent and 1.8 percent, respectively.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index slid by 0.6 percent, while Hong Kong's Hang Seng Index plunged by 2.3 percent.

The major European markets have also moved to the downside on the day. While the U.K.'s FTSE 100 Index has fallen by 0.5 percent, the French CAC 40 Index and the German DAX Index are down by 1.3 percent and 1.4 percent, respectively.

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 7.5 basis points at 4.637 percent.