Stocks are roughly flat in mid-day trading on Thursday after recovering from an early move to the downside. Despite the choppy trading on the day, the Dow and the Nasdaq have edged up to new record intraday highs.
Currently, the major averages are on opposite sides of the unchanged line. While the S&P 500 is down 0.50 points or less than a tenth of a percent at 2,554.74, the Dow is up 8.14 points or less than a tenth of a percent at 22,881.03 and the Nasdaq is up 5.05 points or 0.1 percent at 6,608.60.
The initial weakness on Wall Street was partly due to profit taking after the major averages reached 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 have been 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 showing only modest moves on the day, although considerable weakness is visible among telecom stocks. The…