2/14/2012 10:02 AM ET
(RTTNews) - With traders expressing renewed concerns about the financial situation in Europe, stocks are seeing modest weakness in early trading on Tuesday. The major averages have slipped into negative territory, partly offsetting the gains posted in the previous session.
The major averages have bounced off their lows for the young session in recent trading but remain in the red. The Dow is down 16.80 points or 0.1 percent at 12,857.24, the Nasdaq is down 3.38 points or 0.1 percent at 2,928.01 and the S&P 500 is down 2.61 points or 0.2 percent at 1,349.16.
The early weakness on Wall Street is due in large part to news that Moody's cut the debt ratings of six European countries, including Italy, Spain and Portugal, and warned it could cut the triple-A ratings of France, Britain and Austria.
The ratings agency attributed the actions to what it sees as Europe's weakening ability to implement austerity programs and reforms.
Traders are also reacting to a report on U.S. retail sales in the month of January, which showed that sales rose by less than expected amid a notable drop in auto sales. However, core sales, which exclude autos, gasoline and building materials, showed a notable increase.
The report showed that retail sales rose by 0.4 percent in January, while revised data showed that sales were unchanged in December. Economists had expected sales to increase by 0.7 percent compared to the 0.1 percent increase that had been reported for the previous month.
Excluding a 1.1 percent drop in sales by motor vehicle and parts dealers, retail sales actually rose by 0.7 percent in January compared to a 0.5 percent drop in December. The report also showed that core retail sales increased by 0.7 percent in January.
Housing stocks are seeing considerable weakness in early trading, with the Philadelphia Housing Sector Index down by 2 percent. Within the sector, Masco (MAS) is posting a steep loss after reporting a wider than expected fourth quarter loss.
Steel, brokerage, and airline stocks are also moving to the downside, while most of the major sectors are showing relatively modest moves. Notable strength has emerged among trucking stocks.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Tuesday. Japan's Nikkei 225 Index and Hong Kong's Hang Seng Index rose by 0.6 percent and 0.2 percent, respectively, while Australia's All Ordinaries Index fell by 0.9 percent.
Meanwhile, the major European markets are all seeing modest weakness on the day. While the French CAC 40 Index is down 0.3 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both down by 0.2 percent.
1
2
Next Page