Major Averages Climb Back Near Unchanged After Initial Drop

After initially moving to the downside, stocks have regained some ground over the course of morning trading on Thursday. The major averages have climbed off their lows for the session and are now lingering near the unchanged line.

Currently, the major averages are posting modest losses. The Dow is down 13.49 points or 0.1 percent at 22,859.40, the Nasdaq is down 2.17 points or less than a tenth of a percent at 6,601.38 and the S&P 500 is down 2.17 points or 0.1 percent at 2,553.07.

The initial weakness on Wall Street was partly due to profit taking after the major averages edged up to new record closing highs in the previous session.

A negative reaction to earnings news from Citigroup (C) and JPMorgan (JPM) also weighed on the markets, with both financial giants moving lower despite reporting better than expected third quarter earnings.

Nonetheless, selling pressure waned shortly after the start of trading, as traders may be worried about missing out on further upside for the markets.

On the U.S. economic front, the Labor Department released a report showing producer prices increased in line with economist estimates in the month of September.

The Labor Department said its producer price index for final demand climbed by 0.4 percent in September after edging up by 0.2 percent in August.

Excluding food and energy prices, core producer prices still rose by 0.4 percent in September after inching up by 0.1 percent in August. Core prices had been expected to rise by 0.2 percent.

A separate Labor Department report showed first-time claims for unemployment benefits fell by more than anticipated in the week ended October 7th.

The report said initial jobless claims dropped to 243,000, a decrease of 15,000 from the previous week’s revised level of 258,000. Economists had expected jobless claims to dip to 251,000.

Most of the major sectors are once again showing only modest moves, contributing to the lackluster performance by the broader markets.

Considerable weakness is visible…

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