After moving modestly lower in early trading on Tuesday, stocks have turned in a lackluster performance over the course of the morning. The major averages have climbed well off their lows for the session and are lingering near the unchanged line.
While profit taking contributed to the early weakness on Wall Street following the recent strength in the markets, selling pressure remained subdued amid some uncertainty about the near-term outlook for the markets. Traders seemed reluctant to sell stocks and miss out on any further upside.
The subsequent recovery was partly due to the release of a report from the National Association of Home Builders showing that homebuilder confidence jumped to a six-year high in September.
Most of the major sectors are showing only modest moves in late morning trading, although notable weakness remains visible among airline stocks. The NYSE Arca Airline Index is down by 1.5 percent, with Republic Airways (RJET) leading the way lower.
Oil service, railroad, and trucking stocks are also seeing continued weakness on the day, while considerable strength has emerged among tobacco stocks.
The major averages are currently turning in a mixed performance, with the Dow posting a most gain. While the Dow is up 22.84 points or 0.2 percent at 13,575.94, the Nasdaq is down 1.49 points or 0.1 percent at 3,177.18 and the S&P 500 is down 0.78 points or 0.1 percent at 1,460.41.
by RTT Staff Writer
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