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Stocks Move Back To The Downside In Mid-Afternoon Trading - U.S. Commentary

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Stocks have shown a notable move back to the downside in recent trading on Tuesday after recovering from an early sell-off. The major averages have pulled back more firmly into negative territory but remain off their worst levels of the day.

The initial weakness seen on Wall Street was partly due to a negative reaction to the Bank of Japan's latest monetary policy decision.

Overnight, the Bank of Japan unanimously decided to retain its target of doubling the monetary base in two years but did not announce any new steps to curb bond market volatility.

Selling pressure waned not long after the start of trading, however, and some traders used the early sell-off as an opportunity to pick up stocks at reduced levels.

The recent move back to the downside may be partly due to indications of escalating violence in Istanbul's Taksim Square, where thousands of protesters have gathered.

Housing stocks are seeing considerable weakness in mid-afternoon trading, with the Philadelphia Housing Sector Index down by 2.2 percent. The index is poised to end the session at its lowest closing level in well over a month.

Significant weakness is also visible among gold stocks, which have moved lower along with the price of the precious metal. With gold for August delivery sliding $9 to $1,377 an ounce, the NYSE Arca Gold Bugs Index is down by 2 percent.

Steel, semiconductor, natural gas, and oil service stocks are also under pressure, moving lower along with most of the major sectors.

The major averages have moved roughly sideways in recent trading, posting notable losses. The Dow is down 94.45 points or 0.6 percent at 15,144.14, the Nasdaq is down 29.63 points or 0.9 percent at 3,444.14 and the S&P 500 is down 13.81 points or 0.8 percent at 1,629.00.

by RTT Staff Writer

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