(RTTNews) - Stocks are lingering in the red in early afternoon trading on Wednesday, as worries over inflation and the condition of the stagnant housing market have weighed on equities. The major averages are all in negative territory, offsetting a small portion of this week's gains.

Ahead of the opening bell on Wall Street, the Labor Department released a report showing that consumer prices increased for the third consecutive month in October, with the continued price growth partly due to a notable increase in energy prices.

The report raised concerns among traders amid news that St. Louis Federal Reserve President James Bullard indicated that the Federal Reserve might not raise interest rates from near zero levels until 2012.

Separately, the Commerce Department reported that housing starts showed an unexpected decrease in the month of October, although analysts have pointed out that the drop came amid some uncertainty about the first-time home buyers tax credit.

In earnings news, BJ's Wholesale Club (BJ), Chico's FAS (CHS), Salesforce.com (CRM) and AutoDesk (ADSK) reported third quarter results that were mixed on both the profit and revenue fronts.

The major averages have moved roughly sideways in recent trading, stuck moderately below the unchanged line. The Dow is currently down 42.10 at 10,395.32, the Nasdaq is down 16.96 at 2,186.82 and the S&P 500 is down 3.61 at 1,106.71.

Sector News
Electronic storage stocks continue to post notable losses in early afternoon trading, with the NYSE Arca Disk Drive Index currently down by 1.6 percent. Within the sector, Seagate Technology (STX) is down by 4.3 percent after being downgraded by Bank Of America.

Biotechnology stocks are also moving markedly lower, dragging the NYSE Arca Biotechnology Index down by 1.4 percent. Despite the loss, the index remains stuck in a recent trading range.

Illumina Inc. (ILMN) is helping to lead the sector lower, slipping by 6.1 percent. With the pullback, the stock fell to its lowest intraday price in over nine months earlier in the session.

Notable weakness has also emerged among healthcare-related stocks as the Senate waits for the Congressional Budget Office's estimate of the cost of its healthcare reform bill.

Meanwhile, banking stocks continue to buck the day's downtrend, with the Kbw Bank Index up by 1.3 percent, continuing its seesaw movement.

Stocks In The News

Concur Technologies (CNQR) is moving considerably lower after the company reported fourth quarter revenues of $64.4 million, falling short of the $67.0 million expected by analysts. The stock has dropped by 10.8 percent, pulling back off the more than one-year closing high set in the previous session.

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