(RTTNews) - After seeing significant strength in the previous session, stocks are pulling back in mid-morning trading on Friday, despite largely positive economic news. The major averages are all in negative territory, largely resuming their downward move after yesterday’s strong rally.

Activity in the Chicago-area manufacturing sector unexpectedly expanded in the month of October, according to a report released by the Institute for Supply Management - Chicago, with the index of activity in the sector rising to its highest level in over a year.

The report showed that the index of activity in the manufacturing sector rose to 54.2 in October from 46.1 in September, with a reading above 50 indicating growth in the sector. Economists had been expecting the index to increase to a reading of 49.0.

Separately, Reuters and the University of Michigan released a report showing the consumer sentiment index was revised up to 70.6 from the preliminary October reading of 69.4, although it remained below 73.5 in September. Economists had expected the index to be revised up to 70.0.

Earlier this morning, the Commerce Department reported that personal spending decreased in September, while personal income came in nearly unchanged. The data saw little market reaction.

On the earnings front, Chevron (CVX), Sanofi-Aventis (SNY), Samsung and Las Vegas Sands (LVS) reported mixed quarterly results.

The major averages are currently posting notable losses, just off their worst levels of the day. The Dow is currently down 84.42 at 9,878.16, the Nasdaq is down 13.91 at 2,083.64 and the S&P 500 is down 9.60 at 1,056.51.

Sector News

Gold and healthcare provider stocks are turning in some of the worst performances on the day, with the NYSE Arca Gold Bugs Index and the Morgan Stanley Healthcare Provider Index both down by 3.4 percent. Despite the pullbacks, the indices are offsetting only a small portion of yesterday’s gains.

Trucking stocks are also retreating, although by more modest margins, as reflected by the 1 percent pullback by the Dow Jones Trucking Index. At its lows for the session the index was at a three-month intraday low.

YRC Worldwide (YRCW) has helped to lead the trucking sector lower, falling by 6.4 percent. The loss comes after the firm reported a third-quarter net loss of $2.67 per share, wider than the expected loss of $1.70 per share. Revenues also fell short of analyst estimates.

Banking, networking, oil service, and steel stocks are also moving notably lower, giving back some of yesterday’s gains.

Stocks Driven By Analyst Comments

Investment Technology Group (ITG) is seeing considerable weakness after being downgraded by JP Morgan Chase from Buy to Neutral. The stock is currently down by 2.9 percent after setting a three-month intraday low.

Boyd Gaming (BYD) is also retreating following a downgrade by Argus from Buy to Sell. Shares are falling by 4.8 percent, testing Wednesday’s three and a half month intraday low earlier in the session.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region offset some of their recent losses on Friday. Japan’s benchmark Nikkei 225 Index rose by 1.5 percent on the day, while Hong Kong’s Hang Seng Index advanced by 2.3 percent.

Meanwhile, the major European markets are turning in a mixed performance. The U.K.’s FTSE 100 is up by 0.1 percent, while the French CAC 40 Index and the German DAX Index are down by 0.6 percent and 0.7 percent, respectively.

In the bond markets, treasuries are showing strength amid the pullback on Wall Street. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 3.441 percent, posting a loss of 6.0 basis points.

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Posted in Categories: Economy, Eurozone, Japan, Releases, USA.

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