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U.S. Stocks Continue To Give Back Ground In Morning Trading

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Stocks have moved mostly lower over the course of morning trading on Tuesday, extending the pullback seen in the previous session. The major averages have all slid firmly into negative territory.

The major averages have seen further downside in recent trading, falling to new lows for the session. The Dow is down 245.25 points or 0.7 percent at 33,832.38, the Nasdaq is down 112.74 points or 0.8 percent at 13,802.03 and the S&P 500 is down 26.31 points or 0.6 percent at 4,136.95.

The weakness that has emerged on Wall Street comes as traders continue to cash in on the recent strength in the markets.

Profit taking also contributed to the pullback on Monday after the Dow and the S&P 500 ended last Friday's trading at new record closing highs.

A new wave of coronavirus infections overseas is also weighing on the markets amid concerns about new restrictions and the impact on the global economy.

Meanwhile, traders have largely shrugged off upbeat earnings news from companies like Procter & Gamble (PG), Johnson & Johnson (JNJ) and Travelers (TRV).

Airline stocks have moved sharply lower in morning trading, resulting in a 5 percent nosedive by the NYSE Arca Airline Index.

United Airlines (UAL) has helped lead the sector lower, tumbling by 8.5 percent after reporting a wider than expected first quarter loss.

Significant weakness has also emerged among energy stocks, with the Philadelphia Oil Service Index and the NYSE Arca Oil Index slumping by 4.5 percent and 3.5 percent, respectively.

Tobacco stocks are also seeing considerable weakness after a report from the Wall Street Journal said the Biden administration is considering requiring tobacco companies to lower the nicotine in all cigarettes sold in the U.S.

Steel, financial, and networking stocks have also shown notable moves to the downside on the day, while some strength is visible among commercial real estate and utilities stocks.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's Nikkei 225 Index plunged by 2 percent, while China's Shanghai Composite Index edged down by 0.2 percent.

The major European markets have also moved to the downside on the day. While the French CAC 40 Index has tumbled by 1.8 percent, the U.K.'s FTSE 100 Index is down by 1.5 percent and the German DAX Index is down by 1.2 percent.

In the bond market, treasuries are regaining ground following the pullback seen over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.9 basis points at 1.582 percent.

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