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Stocks Posting Steep Losses In Mid-Afternoon Trading - U.S. Commentary

Stocks have moved sharply lower over the course of the trading day on Tuesday, adding to the steep losses posted in the previous session. The major averages have slid firmly into negative territory after showing a lack of direction earlier in the session.

The substantial weakness on Wall Street reflects concerns about the outlook for the global economy as well as uncertainty about the upcoming earnings season. A notably lower close by the European markets also contributed to the pullback by U.S. stocks.

Housing stocks have shown a significant move to the downside over the course of the trading day, dragging the Philadelphia Housing Sector Index down by 3.2 percent. With the loss, the index has fallen to its lowest intraday level in a month.

Considerable weakness has also emerged among electronic storage stocks, as reflected by the 2.8 percent loss being posted by the NYSE Arca Disk Drive Index, which has fallen to a two-month low.

Biotechnology, health insurance, steel, and chemical stocks are also posting steep losses amid broad based weakness in the markets.

The major averages have moved roughly sideways in recent trading, lingering near their worst levels of the day. The Dow is down 181.23 points or 1.4 percent at 12,748.36, the Nasdaq is down 49.82 points or 1.6 percent at 2,997.26 and the S&P 500 is down 20.40 points or 1.5 percent at 1,361.80.

by RTTNews Staff Writer

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