After initially moving to the downside, stocks have rebounded over the course of morning trading on Tuesday. The major averages have climbed well off their lows of the young session and are now lingering near the unchanged line.
Currently, the major averages are nearly flat, showing moves of less than a tenth of a percent. The Dow is up 8.10 points at 22,126.52, the Nasdaq is up 0.39 points at 6,384.16 and the S&P 500 is down 0.05 points at 2,480.86.
The initial weakness on Wall Street was partly due to profit taking after the Dow climbed to a new record closing high for the ninth consecutive session on Monday.
However, selling pressure waned shortly after the open, as traders seemed reluctant to make significant moves ahead of the release of reports on labor productivity and costs and producer and consumer price inflation in the coming days.
Remarks by Federal Reserve officials may also attract attention later this week, as traders look for clues about the outlook for monetary policy.
In a speech on Monday, St. Louis Fed President James Bullard said the current level of interest rates is likely to remain appropriate over the near term amid subdued inflation.
Most of the major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.
Biotechnology stocks are seeing considerable weakness, however, with the NYSE Arca Biotechnology Index sliding by 1.2 percent.
Depomed (DEPO) is posting a particularly steep loss after the company reported second quarter adjusted earnings that matched estimates but lowered its full-year guidance.
Steel stocks are also giving back ground after yesterday’ rally, while some strength is visible among natural gas and computer hardware stocks.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index fell by 0.3 percent, while Hong Kong’s Hang Seng Index advanced by 0.6 percent.
The major European markets have also turned mixed on the day. While the German DAX Index is just below the unchanged line, the U.K.’s FTSE 100 Index is up by 0.1 percent and the French CAC 40 Index is up by 0.2 percent.
In the bond market, treasuries are seeing modest weakness, offsetting the uptick seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by a basis point at 2.267 percent.
by RTT Staff Writer
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