Stocks are seeing modest weakness in mid-afternoon trading on Tuesday, although selling pressure has remained relatively subdued. The major averages have slipped into negative territory, adding to the slim losses posted in the previous session.
While profit taking has helped to drag stocks moderately lower following the recent strength on Wall Street, some traders seem reluctant to sell stocks and miss out on any further upside.
Uncertainty about the effectiveness of the Federal Reserve's recently announced third round of quantitative easing is also helping to keep traders on the sidelines.
Nonetheless, airline stocks have moved sharply lower on the day, dragging the NYSE Arca Airline Index down by 2.1 percent. Republic Airways (RJET) has helped to lead the sector lower, falling by 6.1 percent after ending the previous session at its best closing level in almost a month.
Oil service stocks have also come under pressure, resulting in a 2 percent loss by the Philadelphia Oil Service Index. The weakness in the oil service sector comes as the price of crude oil has seen further downside after tumbling by more than $2 a barrel on Monday.
Natural gas, steel, and networking stocks are also seeing notable weakness in mid-afternoon trading, while strength is visible among tobacco and healthcare provider stocks.
The major averages are currently posting modest losses for the session, with the Dow down 12.91 points or 0.1 percent at 13,540.18, while the Nasdaq is down 6.20 points or 0.2 percent at 3,172.47 and the S&P 500 is down 4.48 points or 0.3 percent at 1,456.71.
by RTT Staff Writer
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