After initially moving to the upside, the major averages have turned mixed over the course of morning trading on Wednesday. While the Dow and the S&P 500 are hovering in positive territory, the tech-heavy Nasdaq has pulled back into the red.
Currently, the major averages are on opposite sides of the unchanged line. The Nasdaq is down 10.04 points or 0.2 percent at 6,365.53, while the Dow is up 49.84 points or 0.2 percent at 21,803.15 and the S&P 500 is up 2.95 points or 0.1 percent at 2,460.80.
The initial strength on Wall Street was partly due to bargain hunting following yesterday’s sell-off, which reflected geopolitical concerns on the heels of North Korea’s latest nuclear test.
However, traders seemed reluctant to make significant moves amid uncertainty ahead of the European Central Bank’s monetary policy meeting on Thursday.
On the U.S. economic front, the Institute for Supply Management released a report showing a rebound in the pace of growth in service sector activity in the month of August.
The ISM said its non-manufacturing index climbed to 55.3 in August after falling to 53.9 in July, with a reading above 50 indicating growth in the service sector. Economists had expected the index to rebound to 55.8.
A separate report released by the Commerce Department showed the trade deficit came in slightly wider in the month of July.
The Commerce Department said the trade deficit widened to $43.7 billion in July from a revised $43.5 billion in June. Economists had expected the deficit to widen to $44.6 billion.
Railroad stocks are showing a substantial move to the upside in morning trading, resulting in a 2.1 percent jump by the Dow Jones Railroads Index. The index has reached its best intraday level in well over a month.
CSX Corp. (CSX) has helped to lead the railroad sector higher after reporting very good progress in transitioning its operating model to precision scheduled railroading.
Significant strength has also emerged among computer hardware stocks, as reflected by the 2.1 percent spike by the NYSE Arca Computer Hardware Index. With the gain, the index has also reached a one-month intraday high
Electronics for Imaging (EFII) is posting a standout gain after the digital imaging company said it does not currently expect an accounting review to require a restatement of previously reported financial results.
Energy stocks are also seeing considerable strength amid an increase by the price of crude oil, while most of the other major sectors are showing more…