Most stocks continue to post sizable losses in early afternoon trading on Wednesday, although some sectors such as oil and gold are bucking the downtrend in reaction to the ongoing chaos in the Middle East. The day's upbeat reading on existing home sales in the U.S. has failed to offset the selling pressure.
The major averages have come off of their worst levels in recent dealing but remain sharply lower. The Dow is currently down 86.28 points or 0.7 percent at 12,126.51, the Nasdaq is down 38.83 points or 1.4 percent at 2,717.59 and the S&P 500 is down 9.36 points or 0.7 percent at 1,306.08.
Violence in the Middle East continues to rock the markets today, with concerns regarding unrest in major oil exporter Libya driving oil up by $4.18 to $99.60 a barrel.
On Tuesday, Libyan leader Moammar Gadhafi remained defiant, refusing to step down. Casualties have surged to nearly 1,000, according to some reports, as anti-government protesters continue to clash with the military.
Earlier, the National Association of Realtors said U.S. existing home sales rose 2.7 percent to an annual rate of 5.36 million in January from a downwardly revised 5.22 million in December.
With the monthly increase, existing home sales in January were up by 5.3 percent compared to the same month a year ago, reflecting the first year-over-year increase in seven months.
Lawrence Yun, NAR chief economist, said, "The uptrend in home sales is consistent with improvements in the economy and jobs, which are helping boost consumer confidence."
"The extremely favorable housing affordability conditions are a big factor, but buyers have been constrained by unnecessarily tight credit," he added. "As a result, there are abnormally high levels of all-cash purchases, along with rising investor activity."
Sector News
Airline stocks are continuing to show substantial weakness in the early afternoon, with the NYSE Arca Airline Index posting a 4.4 percent loss. The surge in oil prices and the subsequent concerns about higher fuel prices have dragged the index down to a new four-month intraday low.
US Airways Group (LCC) and United Continental (UAL) are down by 10.4 percent and 10.5 percent, respectively. US Airways is poised to close at its worst level since July, while United Continental is on pace for its lowest closing level since mid-September.
Computer hardware, electronic storage and semiconductor stocks are also markedly lower. Some of the weakness among tech stocks comes after Hewlett Packard (HPQ) issued a disappointing forecast after the closing bell yesterday.
Housing, retail, trucking, steel and telecom stocks are also notably lower, while gold, oil and natural gas stocks continue to post strong gains.
The NYSE Arca Gold Bugs Index and the NYSE Arca Oil Index are up by 1.8 percent and 2.1 percent, respectively. The day's safety trade is boosting gold stocks, while concerns about the disruption of oil supply amid rioting in Libya are driving oil stocks higher.
Stocks In The News
Despite most stocks moving lower on the day, Cabot Oil & Gas (COG) is sharply higher after reporting fourth quarter earnings of $0.47 per share, more than double expectations. The stock is up by 10.9 percent, on pace to close at its best level in over a year.
Meanwhile, Dollar Tree (DLTR) is trading lower after its fourth quarter revenues came in at $1.73 billion, just below expectations for $1.74 billion. Shares are down by 5.4 percent, giving back recent gains.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region ended mostly lower again on Wednesday. Japan's benchmark Nikkei 225 Index fell by 0.8 percent, while Hong Kong's Hang Seng slid by 0.4 percent.
The major European markets saw heavier losses. The U.K.'s FTSE 100 Index and the German DAX Index fell by 1.2 percent and 1.7 percent, respectively, while the French CAC 40 Index closed down by 0.9 percent.
In the bond markets, treasuries are modestly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 3.435 percent, posting a loss of 2.6 basis points.
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December 26, 2025 08:42 ET Third quarter economic growth data from some major economies including the U.S. were the main news in this holiday shortened week. GDP growth and industrial production data from the U.S. helped to boost morale, while the consumer confidence survey results were less upbeat. In Europe, the quarterly economic growth data from the U.K. drew attention, while the minutes of the Australian central bank’s latest policy session was in focus in Asia.