U.S. Stocks Little Changed After Recovering From Early Weakness

After moving modestly lower early in the session, stocks have regained ground over the course of the trading day on Wednesday. The major averages have all climbed well off their lows of the session.

Currently, the major averages are narrowly mixed. While the Nasdaq is up 11.61 points or 0.1 percent at 12,165.02, the S&P 500 is down 1.31 points or less than a tenth of a percent at 4,153.56 and the Dow is down 77.58 points or 0.2 percent at 33,899.05.

The early weakness on Wall Street partly reflected a negative reaction to some of the latest earnings news, with shares of Netflix (NFLX) moving sharply lower after the streaming giant reported weaker than expected first quarter revenues.

Financial giant Morgan Stanley (MS) also moved to the downside and is currently nearly unchanged despite reporting first quarter results that exceeded analyst estimates.

Meanwhile, shares of Travelers (TRV) have surged after the insurance giant reported better than expected first quarter results.

Negative sentiment was also generated in reaction to a jump in treasury yields, with the yield on the benchmark ten-year note reaching its highest levels in nearly a month.

The increase in treasury yields reflects concerns about global inflation after a report showed U.K. consumer prices increased more than expected in March.

Later in the day, the Federal Reserve is due to release its Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts.

Sector News

Despite the recovery by the broader markets, networking stocks continue to see substantial weakness, with the NYSE Arca Networking Index plunging by 2.9 percent to its lowest intraday level in over three months.

Considerable weakness also remains visible among computer hardware stocks, as reflected by the 2.8 percent slump by the NYSE Arca Computer Hardware Index. The index is pulling back off a two-month closing high.

Steel stocks also continue to see significant weakness in afternoon trading, resulting in a 2.1 percent drop by the NYSE Arca Steel Index.

Gold and energy stocks are also seeing notable weakness on the day, while banking stocks have shown a strong move to the upside.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index dipped by 0.2 percent, while South Korea’s Kospi crept up by 0.2 percent.

The major European markets also turned mixed on the day. While the U.K.’s FTSE 100 Index edged down by 0.1 percent, the German DAX Index inched up by 0.1 percent and the French CAC 40 Index rose by 0.3 percent.

In the bond market, treasuries have climbed off their worst levels but remain in negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4 basis points at 3.612 percent.

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