Modupe Gbadeyanka
By Investors Hub
The major U.S. index futures are pointing to a mixed open on Friday, with stocks poised to move in opposite directions once again after closing mixed for two consecutive sessions. Lingering uncertainty about the near-term outlook for the markets may keep some traders on the sidelines going into the first weekend of the summer.
Stocks saw modest strength for much of the trading session on Thursday but gave back ground going into the close. The major averages pulled back near the unchanged line, with the Dow and the S&P 500 dipping into negative territory.
The major averages finished the day mixed for the second consecutive session. While the Nasdaq inched up 2.73 points or less than a tenth of a percent to 6,236.69, the Dow slipped 12.74 points or 0.1 percent to 21,397.29 and the S&P 500 edged down 1.11 points or 0.1 percent to 2,434.50.
Earlier in the day, stocks benefited from a positive reaction to the release of the details of the Senate Republican plan to repeal and replace Obamacare.
Healthcare stocks showed a strong move to the upside following the release of the draft of the bill but gave back ground along with the broader markets late in the session.
The pullback may partly have reflected uncertainty about the future of the bill after four Republican Senators said they cannot support the plan in its current form.
Senate Majority Leader Mitch McConnell, R-Ken., has little margin for error with the bill, as he can only afford to lose the support of two Republicans and still pass the legislation.
On the U.S. economic front, the Labor Department released a report before the start of trading showing a modest uptick in first-time claims for unemployment benefits in the week ended June 17th.
The report said initial jobless claims inched up to 241,000, an increase of 3,000 from the previous week’s revised level of 238,000. Economists had expected jobless claims to edge up to 240,000.
A separate report from the Conference Board showed that its index of leading economic indicators rose in line with economist estimates in the month of May.
The Conference Board said its leading economic index climbed by 0.3 percent in May after rising by a downwardly revised 0.2 percent in April.
Most of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets.
Gold stocks held on to strong gains, however, with the NYSE Arca Gold Bugs Index climbing by 1.8 percent. The index continued to rebound after ending Tuesday’s trading at its lowest closing level in over a month. The strength among gold stocks came amid an increase by the price of the precious metal.
Significant strength also remained visible among pharmaceutical stocks, as reflected by the 1.7 percent gain posted by the NYSE Arca Pharmaceutical Index. With the upward move, the index reached its best closing level in ten months.
Within the pharmaceutical sector, Novartis (NVS) posted a standout gain after trial results revealed its Canakinumab reduces the risk of major adverse cardiovascular events in patients with a prior heart attack.
Steel, biotechnology, and software stocks also saw some strength on the day, while banking and tobacco stocks moved to the downside.
