Major Averages Nearly Unchanged Amid Lackluster Session

wallstreet oct10 12oct21 lt

After showing a lack of direction early in the session, stocks continue to turn in a lackluster performance in mid-day trading on Tuesday. The major averages have spent the day bouncing back and forth across the unchanged line.

Currently, the major averages are little changed on the day. The Dow is up 15.17 points or less than 0.1 percent at 34,511.23, the Nasdaq is up 2.30 points or less than 0.1 percent at 14,488.50 and the S&P 500 is up 1.06 points or less than 0.1 percent at 4,362.25.

The choppy trading on Wall Street comes as traders express some uncertainty about the outlook for the markets following the volatility seen throughout early October.

Concerns about inflation and the Federal Reserve scaling back stimulus as early as next month continue to weigh on the markets.

Earnings news is also on traders' minds, with financial giant JPMorgan Chase (JPM) due to report its third quarter results before the start of trading on Wednesday.

Bank of America (BAC), Citigroup (C), Morgan Stanley (MS), Wells Fargo (WFC), and Goldman Sachs (GS) are also due to report their quarterly results in the coming days.

On the U.S. economic front, the Labor Department released a report showing job openings dropped to 10.4 million in August from an upwardly revised 11.1 million in July.

Among individual stocks, shares of MGM Resorts (MGM) have shown a strong move to the upside after Credit Suisse upgraded its rating on the resort operator's stock to Outperform from Neutral.

Airbnb (ABNB) is also seeing notable strength after Cowen upgraded its rating on the vacation rental company to Outperform from Market Perform.

On the other hand, shares of CureVac (CVAC) have come under pressure after the biopharmaceutical company said it would halt development of its first-generation COVID-19 vaccine candidate.

Sector News

Reflecting the lackluster performance by the broader markets, most of the major sectors continue to show only modest moves on the day.

Gold stocks continue to see significant strength, however, with the NYSE Arca Gold Bugs Index climbing by 1.7 percent.

The strength among gold stocks comes amid an increase by the price of the precious metal, as gold for December delivery is rising $5.50 to $1,761.20 an ounce.

Commercial real estate stocks have also shown a notable move to the upside, driving the Dow Jones U.S. Real Estate Index up by 1.3 percent.

On the other hand, computer hardware stocks have come under pressure, resulting in a 1.1 percent drop by the NYSE Arca Computer Hardware Index.

Semiconductor stocks have also moved to the downside over the course of the session, dragging the Philadelphia Semiconductor Index down by 1.1 percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's Nikkei 225 Index slumped by 0.9 percent, while China's Shanghai Composite Index tumbled by 1.3 percent.

The major European markets also moved to the downside on the day. While the U.K.'s FTSE 100 Index edged down by 0.2 percent, the French CAC 40 Index and the German DAX Index both fell by 0.3 percent.

In the bond market, treasuries have pulled back near the unchanged line after seeing early strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 1.603 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT