While selling pressure has remained subdued, stocks have moved modestly lower over the course of morning trading on Wednesday. The major averages have slid into negative territory, adding to the slim losses posted in the previous session.
The modest weakness on Wall Street is partly due to troubling economic news from overseas, with a report from Japan showing that the country swung to a trade deficit in July.
A negative reaction to quarterly results from Dell (DELL) is also weighing on the markets, with the PC giant down by 7 percent. While Dell reported better than expected second quarter adjusted earnings, the company also lowered its full year earnings outlook
Computer hardware stocks have moved to the downside on the heels of the news from Dell, dragging the NYSE Arca Computer Hardware Index down by 1.1 percent. Steel, airline, and semiconductor stocks are also seeing notable weakness in late morning trading.
On the other hand, housing stocks have moved sharply higher, driving the Philadelphia Housing Sector Index up by 2 percent. Toll Brothers (TOL) is posting a strong gain after reporting fiscal third quarter earnings and revenues that exceeded analyst estimates.
The major averages have moved to the downside in recent trading, with the Dow hitting a new low for the session. The Dow is down 55.91 points or 0.4 percent at 13,147.67, the Nasdaq is down 6.81 points or 0.2 percent at 3,060.45 and the S&P 500 is down 4.58 points or 0.3 percent at 1,408.59.
by RTT Staff Writer
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