(RTTNews) - Stocks have shown a lack of direction over the course of morning trading on Friday as traders digest the latest monthly employment report. After moving lower at the open, the major averages have been bouncing back and forth across the unchanged line.

The initial weakness came on the heels of the release of a report from the Labor Department showing that employment fell by more than expected in the month of October, with the continued decline in jobs pushing the unemployment rate up to a new twenty-six year high above 10 percent.

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.

Separately, the Commerce Department released its report on wholesale inventories in the month of September, showing that inventories fell by a little less than economists had been anticipating. The report also showed a continued increase in wholesale sales.

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.

This afternoon, the Federal Reserve’s consumer credit report for September may also garner 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 report is due to be released at 3 p.m. ET.

The major averages have pulled back into negative territory in recent trading, although they remain off the lows set at the open. The Dow is currently down 39.45 at 9,966.51, the Nasdaq is down 10.23 at 2,095.09 and the S&P 500 is down 5.44 at 1,061.19.

Sector News

Commercial real estate and banking stocks are turning in some of the day’s worst performances with the Morgan Stanley REIT Index and the Kbw Bank Index falling by 2.2 percent and 1.1 percent, respectively. Despite the pullback, the indices remain stuck in recent ranges.

Healthcare provider, electronic storage, wireless and oil stocks are also moving lower, contributing to the losses currently being shown by the major averages.

Meanwhile, gold stocks are turning in some of the day’s strongest performances, with the NYSE Arca Gold Bugs Index posting a 2.3 percent gain. The index is rising for a fifth straight session but remains stuck in a recent trading range.

Newmont Mining Corp. (NEM) is helping to lead the sector higher, advancing by 3.7 percent. The stock was able to reach its best price in over five months earlier in the session.

The strength in the gold sector comes as the price of the precious metal has reached a new record higher, with gold for December deliver currently up $10.40 at $1,099.70 after reaching a high of $1,101.90 an ounce in earlier dealing.

Stocks Driven By Analyst Comments

TASER International Inc. (TASR) is moving considerably higher in mid-morning trading after being upgraded by JP Morgan Chase to Overweight from Neutral. The stock has shot up by 7.6 percent, moving further off of Wednesday’s eight-month closing low.

General Electric (GE) is also on the rise after being upgraded by Oppenheimer 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. The stock is up by 5.7 percent, further recovering from Wednesday’s two-month closing low.

On the other hand, Quicksilver Resources Inc. (KWK) is retreating after being downgraded by Jefferies from Buy to Hold while also seeing its target price reduced to $13 from $14. The stock has slipped by 2.3 percent but remains stuck in a recent trading range.

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 have turned higher, with the U.K.’s FTSE 100 and the German DAX Index advancing by 0.5 percent and 0.6 percent, respectively, while the French CAC 40 Index is up by 0.3 percent.

In the bond markets, treasuries are showing a lack of conviction after giving up earlier gains. The benchmark ten-year note is sitting at 3.525 percent, essentially unchanged on the session.

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

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