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Stocks Pulling Back Further Off Their Recent Highs - U.S. Commentary


Stocks have moved mostly lower over the course of morning trading on Tuesday, pulling back further off their recent highs. The major averages have slid firmly into negative territory after initially showing a lack of direction.

The weakness on Wall Street comes as traders continue to cash in on the recent strength in the markets, which lifted the S&P 500 to a five-year closing high last Friday.

Uncertainty about the upcoming earnings season has also generated some negative sentiment, with aluminum giant Alcoa (AA) due to release its quarterly results after the close of trading.

The release of results from Alcoa is seen as the unofficial start of the quarterly earnings season, as it is typically the first Dow component to release its results.

Networking stocks have shown a substantial move to the downside on the day, dragging the NYSE Arca Networking Index down by 2.9 percent. With the loss, the index has pulled back well off the eight-month closing high it set on Monday.

Significant weakness has also emerged among computer hardware stocks, as reflected by the 2.1 percent loss being posted by the NYSE Arca Computer Hardware Index. NetApp (NTAP) and Logitech (LOGI) are posting notable losses.

Telecom, steel, energy, and defense stocks have also come under considerable selling pressure, moving lower along with most of the major sectors.

The major averages have seen some further downside in recent trading, hitting new lows for the session. The Dow is down 73.91 points or 0.6 percent at 13,310.38, the Nasdaq is down 19.01 points or 0.6 percent at 3,079.80 and the S&P 500 is down 9.37 points or 0.6 percent at 1,452.52.

by RTTNews Staff Writer

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