While stocks showed a notable move to the downside at the start of trading on Wednesday, selling pressure waned not long after the open. The major averages have subsequently climbed well off their early lows, with the tech-heavy Nasdaq briefly peeking into positive territory.
Profit taking contributed to the initial weakness on Wall Street, with some traders cashing in on the rally seen in the previous session amid lingering uncertainty about the financial situation in Europe.
The markets did not see much follow-through on the initial downward move, however, as traders continued to express optimism about the outlook for corporate earnings.
Despite the subsequent recovery attempt by the broader markets, significant weakness remains visible among housing stocks. The Philadelphia Housing Sector Index is down by 1.3 percent, with Radian Group (RDN) posting a standout loss.
Networking, natural gas, and semiconductor stocks are also seeing continued weakness, although they have climbed off their worst levels of the day.
Meanwhile, considerable strength has emerged among electronic storage stocks, as reflected by the 1.4 percent gain being posted by the NYSE Arca Disk Drive Index. Seagate Technology (STX) is up by 5.7 percent after reporting better than expected quarterly earnings.
Currently, the major averages are posting modest losses, well off their lows for the session. The Dow is down 31.03 points or 0.2 percent at 13,084.51, the Nasdaq is down 0.86 points or less than a tenth of a percent at 3,041.96 and the S&P 500 is down 1.73 points or 0.1 percent at 1,389.05.
by RTT Staff Writer
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