(RTTNews) - Stocks remain grounded near the unchanged mark in mid-afternoon trading on Friday after recovering from their initial pullback that was prompted by dreary employment data. The major averages currently modestly higher, as they continue to swing between gains and losses.

Equities fell at the start of trading after a report from the Labor Department showed employment fell by more than expected in the month of October, pushing the unemployment rate up to a new twenty-six year high above 10 percent.

In related news, President Barack Obama signed a bill extending unemployment coverage for 14 weeks across the country and adds an additional six weeks for areas with the highest unemployment. The bill also extends and expands the first-time homebuyer tax credit.

Additional news on the economic front came from the Commerce Department, which released a report showing that wholesale inventories fell by a little less than economists had been anticipating in September. The report also showed a continued increase in wholesale sales.

This afternoon, the Federal Reserve’s consumer credit report for September may also attract some attention as traders look to see if there has been a slowdown in the decline in outstanding consumer credit. Economists expect consumer credit to shrink by $10 billion.

The major averages have seen little change in recent dealing, hovering just above the unchanged mark. The Dow is currently up 9.75 at 10,015.71, the Nasdaq is up 4.56 at 2,109.88 and the S&P 500 is up 1.60 at 1,068.23.

Dow Components

One of the strong gainers in the Dow has been General Electric (GE), which has shot up by 6.4 percent. With the climb, the stock continues to recover from Wednesday’s two-month closing low.

The gain by GE comes after Oppenheimer upgraded its rating on the stock to Outperform from Perform. The broker also raised its target price on the stock to $18 from $17, citing the firm’s likelihood to generate substantial revenues from the sale of some of its businesses.

Travelers (TRV) and Home Depot (HD) are also on the rise, offsetting recent losses, while McDonald’s (MCD) and Procter & Gamble (PG) are poised to close at fresh highs.

Although they posing a more modest gain than some of its counterparts in the Dow, fast food giant McDonald’s is on pace to set a ten-month closing high, posting a 0.7 percent gain.

Procter & Gamble are also moving higher, advancing by 1.4 percent. The stock is also looking to end the session at its closing highest price in ten months.

On the other hand, Caterpillar (CAT) is one of the worst performers in the blue chip index, falling by 1.1 percent. Despite the retreat, the stock remains stuck in a recent trading range.

Disney (DIS), JP Morgan Chase (JPM) and Bank of America (BAC) are also sliding, although they also continue to see a zigzag pattern.

Sector News

Airline stocks continue to post notable gains in mid-afternoon trading, helped by a decline in crude oil prices on the day. The NYSE Arca Airlines Index is advancing by 4.2 percent continuing to move off of the two-month closing low set on Monday.

JetBlue Airways (JBLU) is helping to lead the sector higher, surging up by 9.1 percent on the day. The advance is lifting the stock further off the more than three-month closing low set on Wednesday.

Retail, railroad and health insurance stocks are also posting strong gains, while weakness remains among electronic storage and commercial real estate stocks. The NYSE Arca Disk Drive Index and the Morgan Stanley REIT Index are falling by 1.5 percent and 1.4 percent, respectively.

Healthcare provider, oil and oil service stocks are also retreating, helping to keep the major averages near the unchanged mark.

In Focus: Economic News

As mentioned above, the Commerce Department revealed that non-farm payroll employment fell by 190,000 jobs in October following a revised decrease of 219,000 jobs in September. Economists had expected a decrease of about 175,000 jobs compared to the loss of 263,000 jobs originally reported for the previous month.

With the continued drop in jobs, the unemployment rate jumped to 10.2 percent in October from an unrevised 9.8 percent in September. The unemployment rate had been expected to show a more modest increase to 9.9 percent.

In a separate report, the Commerce Department reported that wholesale inventories fell by 0.9 percent in September following a 1.3 percent decrease in August. Economists had been expecting inventories to decrease by about 1.0 percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region closed higher on Friday. Japan’s benchmark Nikkei 225 Index rose by 0.7 percent, while Hong Kong’s Hang Seng Index advanced 1.6 percent.

Meanwhile, the major European markets saw little change on the day, with the U.K.’s FTSE 100 and the German DAX Index edging up by 0.3 percent and 0.1 percent, respectively, while the French CAC 40 Index slid by less than a tenth of a percent.

In the bond markets, treasuries are modestly higher. The benchmark ten-year note, which moves opposite of its price, is trading at 3.518 percent, posting a loss of 1.5 basis points on the session.

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

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