By Mark DeCambre and Sara Sjolin, MarketWatch

Nasdaq Composite on track to snap weekly win streak

U.S. stocks were trading lower on Friday afternoon as investors worried about whether the Federal Reserve will raise interest rates as early as September.

Few catalysts and the expiration of August options contracts have contributed to fairly lackluster moves during a week that has offered little guidance for investors about the Fed's policy plans, following the release on Wednesday of minutes from the central bank's July meeting (http://www.marketwatch.com/story/fed-was-split-in-july-over-whether-an-interest-rate-hike-would-be-needed-soon-minutes-show-2016-08-17).

The Dow Jones Industrial Average was down 46 points, or 0.3%, to 18,554, pressured by a 1.7% decline in shares of Wal-Mart Stores Inc. (WMT), while the S&P 500 fell 4 points, or 0.2%, to 2,182. The large-cap gauge's losses were being led by a 1.4% tumble in utilities and a 0.8% skid in the telecom sector. Both are considered defensive plays.

Technology stocks were tipping marginally higher in up-and-down trade, and the materials sector was showing small gains.

Read: S&P's technical factors still look 'pretty bullish' (http://www.marketwatch.com/story/sps-technical-factors-still-look-pretty-bullish-2016-08-19)

An advance in tech is viewed as a bullish sign, with investors rotating out of defensive sectors and into areas considered slightly riskier, said Mike Antonelli, equity sales trader at Robert W. Baird & Co.

"A lot of people have taken dips in the markets as a reason to add or layer some purchases," Antonelli said.

The Nasdaq Composite Index added nearly 4 points, or less than 0.1%, at 5,243, as tech found some bids.

As rise in bond yields and gold also may indicate that investors aren't risk averse.

Yields on the 10-year Treasury note were adding 4.6 basis points to 1.58%. Bond yields and prices move in the opposite direction. Meanwhile, gold futures slumped (http://www.marketwatch.com/story/gold-falls-from-two-week-high-amid-another-fed-shift-2016-08-19), as the U.S. dollar (http://www.marketwatch.com/story/dollar-gains-ground-against-yen-as-investors-wait-for-fresh-signals-2016-08-19) headed modestly higher, putting pressure on dollar-pegged assets.

Other market observers said weakness in stocks on Friday was justified, given trading volumes that are typically thin during the summer, amid a recent string of modest gains.

"We've had a nice run and we're just off all-time highs and the market is saying 'what's the point in taking this risk [into the weekend], if we don't have to,'" said J.J. Kinahan, chief strategist at TD Ameritrade. The main benchmarks all notched record closing highs on Monday but have traded in what many have described as a relatively narrow range.

A decline for the S&P 500 and the Dow would represent their first drop in three sessions. For the week, the Dow industrials were on pace to log a 0.2% decline and the S&P 500 was looking at a 0.3% slide, while the Nasdaq Composite was on track for a 0.1% weekly slump--snapping a streak of seven straight weekly gains.

The downbeat trading action follows comments from San Francisco Fed President John Williams, who said late Thursday, that he would like to see another rate increase "sooner rather than later," (http://www.marketwatch.com/story/feds-williams-appears-to-back-september-rate-hike-2016-08-18) suggesting he is in the camp of central-bank officials who would like a rate increase in September.

Earlier this week, New York Fed President William Dudley also hinted a September move was possible, while Atlanta Fed boss, Dennis Lockhart, talked about "at least one" more increase this year.

Minutes from the Fed's July meeting released Wednesday, however, showed an almost even split between supporters of another rate increase in the near-term and others who would wait for more confidence that inflation was stirring.

Looking ahead, investors are awaiting comments from Fed Chairwoman Janet Yellen, who will speak at a conference in Jackson Hole, Wyo., on Aug. 26, along with a reading of second-quarter gross domestic product and consumer sentiment due the same day.

"Markets could now start to look towards Janet Yellen's Jackson Hole speech next Friday for some sort of idea what the doves on the [Federal Open Market Committee] are thinking as it would appear that they are still holding the balance of power," said Richard Perry, market analyst at Hantec Markets, in a note.

Oil prices also initially rose on Friday, with Brent for October topping $51 a barrel at one point. However, both the London benchmark and crude oil erased gains ahead of the U.S. market open (http://www.marketwatch.com/story/brent-oil-hovers-above-50-on-signs-of-a-tighter-market-2016-08-19), trading down almost 0.5%.

Movers and shakers: Shares of Applied Materials Inc.(AMAT) rallied 6.7% after the maker of semiconductor manufacturing tools late Thursday said orders hit a record high (http://www.marketwatch.com/story/applied-materials-orders-hit-record-high-2016-08-18)in the third quarter.

Gap Inc.(GPS) rose 2.2% even as the retailer late Thursday sales fell in the second quarter (http://www.marketwatch.com/story/gap-cuts-year-view-as-quarterly-sales-fall-2016-08-18-174851719).

Deere & Co.(DE) climbed 11% as the farm-equipment maker boosted its full-year earnings forecast (http://www.marketwatch.com/story/deere-lifts-outlook-as-sales-top-estimates-2016-08-19) after posting a surprise increase in per-share profit.

Foot Locker Inc.(FL) jumped about 11% and Estée Lauder Cos. Inc.(EL) slumped 2.4%, both after their earnings beat expectations (http://www.marketwatch.com/story/foot-lockers-stock-surges-after-profit-and-sales-rose-above-expectations-2016-08-19).

Madison Square Garden Co.(MSG) was down 3.6% after reporting a fourth-quarter loss (http://www.marketwatch.com/story/madison-square-garden-reports-a-loss-2016-08-19).

Emerson Electric Co.(EMR) lost 3.3%, following its agreement to buy U.K.-based Pentair PLC (http://www.marketwatch.com/story/emerson-electric-to-buy-pentairs-valves-business-for-315-billion-2016-08-18)(PNR) for $3.15 billion announced late Thursday.

Viacom Inc.(VIA) was also in the spotlight as The Wall Street Journal reported that the long struggle for power at the company is nearing a conclusion (http://www.marketwatch.com/story/viacom-feud-may-soon-be-settled-with-ceos-ouster-2016-08-18). Shares were up 1.5%.

Other markets: Markets in Asia closed mixed (http://www.marketwatch.com/story/oil-gains-in-asian-markets-cant-lift-other-sectors-2016-08-18), with Japan's Nikkei 225 ending higher, but Hong Kong's Hang Seng Index finishing lower.

European stocks ended lower (http://www.marketwatch.com/story/european-shares-fall-as-auto-makers-slump-2016-08-19) and booked firm weekly losses.

(END) Dow Jones Newswires

August 19, 2016 14:52 ET (18:52 GMT)