Stocks are turning in a lackluster performance in early trading on Wednesday amid uncertainty about the near-term outlook for the markets. The major averages are lingering near the unchanged line after ending the previous session mixed.
The major averages are currently posting modest losses, off their lows for the young session. The Dow is down 7.11 points or 0.1 percent at 12,958.58, the Nasdaq is down 4.43 points or 0.2 percent at 2,944.14 and the S&P 500 is down 1.45 points or 0.1 percent at 1,360.76.
The choppy trading on Wall Street comes as traders seem reluctant to make any significant moves following the recent strength in the markets, which briefly lifted the Dow above 13,000 on Tuesday. Traders are also digesting some disappointing economic data from overseas.
A report from Markit Economics revealed that private sector activity in the eurozone contracted in February, with the corresponding composite output index dipping below the '50' cut-off mark to 49.7. A separate report showed the fourth consecutive monthly contraction in Chinese manufacturing activity.
Most of the major sectors are showing only modest move, contributing to the lack of direction being shown by the broader markets.
Nonetheless, weakness is visible among computer hardware stocks, with Dell (DELL) leading the sector lower after reporting weaker than expected fourth quarter earnings. Shares of Dell are down by 6 percent.
After the close of trading on Tuesday, Dell reported fourth quarter adjusted earnings of $0.51 per share, a penny below analyst estimates. The company also issued disappointing revenue growth guidance for the first quarter.
On the other hand, healthcare provider and oil service stocks are seeing some early strength. Community Health Systems (CYH) is leading the healthcare provider sector higher after reporting fourth quarter earnings above analyst estimates.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index advanced by 1 percent, while Hong Kong's Hang Seng Index ended the day up by 0.3 percent.
Meanwhile, the major European markets have moved to the downside on the day. While the German DAX Index is down by 0.8 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index have fallen by 0.5 percent and 0.3 percent, respectively.
In the bond market, treasuries are seeing modest strength after trending lower over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.2 basis points at 2.033 percent.
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