With traders cashing in on some of the recent strength in the markets, stocks have moved mostly lower during trading on Friday. The major averages have slid firmly into negative territory after closing higher in four out of the five previous sessions.
The weakness on Wall Street is partly due to profit taking following the recent gains, which lifted the major average back toward near-term resistance. Lingering concerns about the economic outlook are also weighing on the markets.
Steel stocks have shown a notable move to the downside over the course of the morning, dragging the NYSE Arca Steel Index down by 2.1 percent. Universal Stainless (USAP) is posting a particularly steep loss after reporting weaker than expected second quarter results.
Considerable weakness has also emerged among airline stocks, as reflected by the 1.7 percent loss being posted by the NYSE Arca Airline Index. Financial, networking, railroad, and software stocks have also come under significant selling pressure.
On the other hand, housing and oil service stocks have moved notably higher on the day, helping to limit the downside for the broader markets.
The major averages have bounced off their worst levels of the day in recent trading but remain stuck in the red. The Dow is down 81.89 points or 0.6 percent at 12,861.47, the Nasdaq is down 20.41 points or 0.7 percent at 2,945.49 and the S&P 500 is down 7.86 points or 0.6 percent at 1,368.65.
by RTT Staff Writer
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