(RTTNews) – After seeing some early volatility, stocks have moved mostly lower over the course of trading on Friday. The major averages have all moved to the downside following the rally seen in the previous session.
Currently, the major averages are just off their lows of the session. The Dow is down 165.27 points or 0.5 percent at 33,864.42, the Nasdaq is down 57.09 points or 0.5 percent at 12,109.18 and the S&P 500 is down 10.26 points or 0.3 percent at 4,135.96.
The weakness that emerged on Wall Street coincided with the release of a report from the University of Michigan showing a jump in year-ahead inflation expectations in the month of April.
The preliminary report said one-year inflation expectations jumped to 4.6 percent in April from 3.6 percent in March.
“These expectations have been seesawing for four consecutive months, alternating between increases and decreases,” said Surveys of Consumers Director Joanne Hsu.
She added, “Uncertainty over short-run inflation expectations continues to be notably elevated, indicating that the recent volatility in expected year-ahead inflation is likely to continue.”
At the same time, five-year inflation expectations held at 2.9 percent for fifth straight month and have stayed within the narrow 2.9 to 3.1 percent range for 20 of the last 21 months.
Traders are also digesting a slew of other U.S. economic data, including a report from the Commerce Department showing retail sales fell by much more than expected in the month of March.
The Commerce Department said retail sales slumped by 1.0 percent in March after dipping by a revised 0.2 percent in February.
Economists had expected retail sales to decline by 0.4 percent, matching the decrease originally reported for the previous month.
Excluding a steep drop in sales by motor vehicle and parts dealers, retail sales still slid by 0.8 percent in March after coming in unchanged in February. Ex-auto sales were expected to dip by 0.3 percent.
A separate report from the Federal Reserve showed U.S. industrial production increased by more than expected in March, although the increase was largely due to a spike in utilities output.
Gold stocks have pulled back sharply on the day, dragging the NYSE Arca Gold Bugs Index down by 3.8 percent. The index ended the previous session at its best closing level in eleven months.
The pullback by gold stocks comes amid a steep drop by the price of the precious metal, with gold for June delivery plunging $38.60 or 1.9 percent to $2,016.70 an ounce.
Notable weakness is also visible among steel stocks, as reflected by the 1.2 percent drop by the NYSE Arca Steel Index.
Software, tobacco and commercial real estate stocks have also moved to the downside on the day, while banking stocks have moved higher.
Financial giant JPMorgan Chase (JPM) is posting a standout gain after reporting record quarterly revenue that exceeded analyst estimates.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index shot up by 1.2 percent, while China’s Shanghai Composite Index climbed by 0.6 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index is up by 0.4 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index are both up by 0.5 percent.
In the bond market, treasuries are extending the downward move seen over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 5.3 basis points at 3.505 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
