After moving modestly lower in early trading on Tuesday, stocks have seen some further downside over the course of the morning. The major averages have slid more firmly into negative territory, adding to the steep losses posted in the previous session.
Concerns about the financial situation in Europe are once again contributing to the weakness on Wall Street, with traders reacting to news that credit ratings agency Moody's revised the outlooks on the Aaa sovereign ratings of Germany, the Netherlands and Luxembourg to negative from stable.
Networking stocks have shown a notable move to the downside on the day, dragging the NYSE Arca Networking Index down by 2 percent. Cisco (CSCO) is helping to lead the way lower after announcing plans to cut about 1,300 jobs or about 2 percent of its global workforce.
Significant weakness has also emerged among transportation stocks, as reflected by the 1.2 percent loss being posted by the Dow Jones Transportation Average. With the loss, the average has fallen to its lowest intraday level in a month.
Energy stocks are also under pressure despite a rebound by the price of crude oil, while steel, defense, computer hardware, and healthcare stocks are also posting notable losses.
The major averages have moved roughly sideways in recent trading, stuck well below the unchanged line. The Dow is down 81.70 points or 0.6 percent at 12,639.76, the Nasdaq is down 12.23 points or 0.4 percent at 2,877.92 and the S&P 500 is down 8.69 points or 0.6 percent at 1,341.83.
by RTT Staff Writer
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