Stocks have moved mostly lower over the course of morning trading on Tuesday after seeing some volatility earlier in the session. Disappointing economic data is contributing to the weakness in the markets along with lower guidance from Hewlett-Packard (HPQ).
The weakness in the markets is partly due to a report from the Commerce Department showing an unexpected drop in housing starts in the month of April. A separate report from the Federal Reserve showing that industrial production was unchanged in April has also generated some negative sentiment.
Technology stocks are helping to lead the way lower once again, as traders react to news that Hewlett-Packard lowered its guidance for the third quarter and the full year. Semiconductor stocks are posting particularly steep losses amid concerns about the outlook for PC demand.
Most of the other major sectors have also moved to the downside, with gold, defense, and trucking stocks posting notable losses. Meanwhile, moderate strength among banking and utilities stocks is helping to limit the downside for the markets.
The major averages have moved off their lows for the session in the past few minutes but remain in the red. The Dow is down 127.30 points or 1 percent at 12,421.07, the Nasdaq is down 18.33 points or 0.7 percent at 2,763.98 and the S&P 500 is down 6.40 points or 0.5 percent at 1,323.07.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.