Stocks continue to linger near the flat line in early afternoon trading on Friday, as a lackluster set of clues on the direction of the economy has prompted another choppy outing in the markets.
Initial optimism was seen as retail sales unexpectedly showed a modest increase in the month of February, according to a report released by the Commerce Department before the opening bell, with the unexpected growth partly due to a jump in sales by electronics and appliance stores.
Although the retail sales data suggested that consumer spending was healthy, Reuters and the University of Michigan released a report showing a continued deterioration in consumer sentiment in March. The latest reading surprised economists, who forecast a modest pickup in the figure.
Meanwhile, a separate Commerce Department report showed that business inventories were essentially unchanged in the month of January, with modest decreases in wholesale and retail inventories offsetting a modest increase in manufacturers' inventories.
In other news, the Obama administration has reportedly tapped San Francisco Federal Reserve President Janet Yellen to take over as Vice Chair of the Federal Reserve following the retirement of the current vice chairman Donald Kohn.
On the corporate front, Canadian fertilizer and agricultural products distributor Agrium, Inc. (AGU) announced that it will no longer pursue U.S.-based rival CF Industries Holdings Inc. (CF) and will let its exchange offer for CF shares expire on March 22nd. Agrium will also not push for the election of its nominees to the CF board.
The major averages have continued their sideways movement in recent dealing, showing a lack of conviction. The Dow is down 6.04 points or 0.1 percent at 10,605.80, the Nasdaq is down 3.37 points or 0.1 percent at 2,365.09 and the S&P 500 is down 1.53 points or 0.1 percent at 1,148.71.
Sector News
Gold stocks have become some of the market's worst performers, pulling the NYSE Arca Gold Bugs Index down by 1.5 percent. Despite the drop, the index remains rangebound.
Shares of Coeur d'Alene Mines (CDE) are weighing on the index, falling by 2.9 percent. The decline is dragging the stock down off of the nearly two-month closing high set yesterday.
Housing, utility and health-related stocks are also weighing down the markets, while commercial real estate stocks are seeing notable strength. The Morgan Stanley REIT Index is up by 0.7 percent and has set a fresh seventeen month intraday high.
Stocks Driven By Analyst Comments
Teen apparel discount retailer Aeropostale Inc. (ARO) is on the rise in early afternoon trading after the firm provided an earnings outlook for the first quarter that beat the Wall Street consensus. The stock has gained 5.3 percent, setting a four and a half month intraday high.
Potash Corp. (POT) is also moving higher after increasing its first quarter profit estimate. The stock has advanced by 7.7 percent, reaching its best intraday price in nearly eighteen months.
On the other hand, Cytori Therapeutics (CYTX) is down after reporting a wider than expected fourth quarter loss. The stock has lost 15.1 percent, slipping to a three and a half month low.
In Focus: Economic Data
As mentioned above, the Commerce Department said that retail sales rose by 0.3 percent in February following a downwardly revised 0.1 percent increase in January. The sales growth came as a surprise to economists, who had expected sales to edge down by 0.2 percent compared to the 0.5 percent growth originally reported for the previous month.
Excluding a 2.0 percent drop in sales by motor vehicle and parts dealers, sales increased by a more substantial 0.8 percent in February compared to a 0.5 percent increase in the previous month. Economists had expected ex-auto sales to edge up by 0.1 percent.
Meanwhile, Reuters and the University of Michigan recently released a report showing that the preliminary reading on the consumer sentiment index for March fell to 72.5 from February's final reading of 73.6. Economists had expected the index to edge up to a reading of 74.0.
Another report from the Commerce Department said that business inventories were essentially unchanged in the month of January following a revised 0.3 percent decrease in December. Inventories had been expected to edge up by 0.1 percent compared to the 0.2 percent drop originally reported for the previous month.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region saw a mixed outing on Friday. Japan's benchmark Nikkei 225 Index gained 0.8 percent, while Hong Kong's Hang Seng Index edged down by 0.1 percent.
Meanwhile, the major European markets closed mostly higher. The U.K.'s FTSE 100 Index and the German DAX Index rose by 0.2 percent and 0.3 percent, respectively, while the French CAC 40 Index edged lower by less than a tenth of a percent.
In the bond markets, treasuries have turned higher after seeing some early weakness. Subsequently, the yield on the benchmark ten-year note is trading at 3.708 percent, down by 1.2 basis points on the day.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.