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Stocks Continue To Show A Lack Of Direction - U.S. Commentary


After an initial move to the upside, stocks have shown a lack of direction over the course of the trading session on Tuesday. The major averages have spent much of the day lingering near the unchanged line.

Currently, the major averages are turning in a mixed performance. While the Nasdaq is down 3.97 points or 0.1 percent at 6,575.76, the Dow is up 30.99 points or 0.1 percent at 22,792.06 and the S&P 500 is up 2.17 points or 0.1 percent at 2,546.90.

The initial strength on Wall Street reflected recent upward momentum, which has driven the major averages to record highs.

However, a lack of major U.S. economic news has led traders to be reluctant to make more significant moves.

Later this week, trading may be impacted by the release of reports on producer and consumer prices and retail sales.

Earnings season is also looming, with financial giants Citigroup (C), JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) due to report their quarterly results in the coming days.

Despite the lackluster performance by the broader markets, airline stocks have shown a significant move to the upside on the day. Reflecting the strength in the sector, the NYSE Arca Airline Index has jumped by 2.2 percent.

Tobacco and oil service stocks are also seeing considerable strength, while modest weakness is visible among gold and railroad stocks.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index climbed by 0.6 percent, while China's Shanghai Composite Index rose by 0.3 percent.

Meanwhile, the major European markets turned in another mixed performance on the day. While the U.K.'s FTSE 100 Index rose by 0.4 percent, the French CAC 40 Index closed just below the unchanged line and the German DAX Index dipped by 0.2 percent.

In the bond market, treasuries have shown a significant move to the upside following recent weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.6 basis points at 2.334 percent.

by RTTNews Staff Writer

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