Stocks have moved mostly lower over the course of the trading day on Tuesday, giving back some ground after trending higher in recent sessions. Selling pressure has remained relatively subdued, however, limiting the downside for the markets.
The major averages have all turned negative, although the Dow is down only 2.61 points or less than a tenth of a percent at 14,444.68 amid a strong gain by Merck (MRK). The Nasdaq is down 17.07 points or 0.5 percent at 3,235.80 and the S&P 500 is down 4.05 points or 0.3 percent at 1,552.17.
The modest weakness that has emerged on Wall Street comes as some traders cash in on the recent strength in the markets.
The Dow closed higher in nine out of the ten previous sessions, reaching record highs, while the S&P 500 and the Nasdaq also set multi-year closing highs on Monday.
Nonetheless, traders have seemed reluctant to make any significant moves amid a relatively light on the economic news front.
Trading activity is likely to pick up later in the week amid the release of key reports on retail sales, industrial production and producer and consumer price inflation.
Among individual stocks, shares of Diamond Foods (DMND) have come under pressure after the snack foods maker reported weaker than expected second quarter results
FuelCell Energy (FCEL) has also shown a notable move to the downside after the company reported a wider than expected first quarter loss.
On the other hand, Verifone (PAY) is moving sharply higher after announcing that its CEO Douglas Bergeron is stepping down. The company also announced the appointment of Chairman Richard McGinn as CEO on an interim basis.
Sector News
Reflecting the pullback by the broader markets, a majority of the major sectors have moved to the downside on the day.
While selling pressure has remained somewhat subdued, notable weakness is visible among software, financial, and housing stocks.
Meanwhile, gold stocks are seeing continued strength on the day, moving higher along with the price of the precious metal. With gold for April delivery climbing $13 to $1,591 an ounce, the NYSE Arca Gold Bugs Index is up by 2.1 percent.
Electronic storage stocks are also holding on to gains, resulting in a 1.5 percent advance by the NYSE Arca Disk Drive Index. Seagate Technology (STX) and Western Digital (WDC) are turning in two of the sector’s best performances.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan’s Nikkei 225 Index fell by 0.3 percent, while Hong Kong’s Hang Seng Index ended the day down by 0.9 percent.
Meanwhile, the major European markets have turned mixed on the day. While the German DAX Index is down by 0.3 percent, the U.K.’s FTSE 100 Index is up by 0.3 percent and the French CAC 40 Index is up by 0.2 percent.
In the bond market, treasuries have shown a notable move to the upside after ending the previous session flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.7 basis points at 2.019 percent.
by RTT Staff Writer
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