Stocks are showing a lack of direction in early trading on Tuesday after ending the previous session sharply lower. The major averages are showing only modest moves, lingering near the unchanged line.
Currently, the major averages remain nearly flat. While the S&P 500 is up 0.18 points at 1,676.30, the Dow is down 5.77 points at 14,930.47 and the Nasdaq is down 3.51 points at 3,766.87.
The choppy trading on Wall Street comes as traders continue to keep an eye on Washington as the government shutdown reaches its eighth day.
While many traders still expect a deal to be reached in the relatively near future, lawmakers on both sides of the aisle are currently holding their ground.
Democrats continue to urge House Speaker John Boehner, R-Ohio, to bring a "clean" spending bill to the floor for a vote, while Republicans are still demanding concessions from the White House.
Traders may also be reluctant to make any significant news ahead of the release of earnings news from well-known companies.
Alcoa (AA) is among the companies releasing its quarterly results after the close of trading. While the aluminum giant is no longer a Dow component, the release of its results is still likely to be seen by many as the unofficial start of earnings season.
Financial giants JP Morgan (JPM) and Wells Fargo (WFC) are among the companies due to release their quarterly results later in the week.
Most of the major sectors are showing only modest moves in early trading, contributing to the lackluster performance by the broader markets.
Healthcare provider and railroad stocks are seeing some strength, while weakness is visible among biotechnology and telecom stocks.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday despite the overnight weakness on Wall Street. Japan's Nikkei 225 Index rose by 0.3 percent, while Hong Kong's Hang Seng Index advanced by 0.9 percent.
Meanwhile, the major European markets have moved to the downside on the day. While the U.K.'s FTSE 100 Index is down by 0.9 percent, the French CAC 40 Index is down by 0.4 percent and the German DAX Index is down by 0.2 percent.
In the bond market, treasuries are turning in a lackluster performance after ending the previous session modestly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 2.638 percent.
by RTT Staff Writer
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