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Stocks Move Mostly Lower On Disappointing Alphabet Results - U.S. Commentary

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After initially moving in opposite directions, stocks have moved mostly lower over the course of morning trading on Tuesday. The major averages have all slid into negative territory, with the Nasdaq and the S&P 500 pulling back off yesterday's record closing highs.

Currently, the major averages all remain in the red, although the Nasdaq is underperforming its counterparts. The Nasdaq is down 69.20 points or 0.9 percent at 8,092.66, while the Dow is down 30.79 points or 0.1 percent at 26,523.60 and the S&P 500 is down 7.49 points or 0.3 percent at 2,935.54.

A steep drop by shares of Alphabet (GOOGL) is weighing on the tech-heavy Nasdaq, with the parent of Google plunging by 8.4 percent.

The sell-off by Alphabet comes after the company reported first quarter earnings that exceeded analyst estimates but on weaker than expected revenues.

Shares of McDonald's (MCD) are lingering near the unchanged line after seeing pre-market strength on better than expected first quarter results.

Meanwhile, General Electric (GE) is posting a strong gain after the industrial conglomerate reported first quarter results that exceeded analyst estimates.

Traders have largely shrugged off upbeat economic data, with reports showing bigger than expected rebounds in consumer confidence and pending home sales.

The Conference Board said its consumer confidence jumped to 129.2 in April after falling to 124.2 in March. Economists had expected the index to rise to 127.0.

"Consumer Confidence partially rebounded in April, following March's decline, but still remains below levels seen last Fall," said Lynn Franco, Senior Director of Economic Indicators at the Conference Board.

A separate report from the National Association of Realtors showed its pending home sales index surged up by 3.8 percent to 105.8 in March after slumping by 1 percent to 101.9 in February. Economists had expected pending home sales to jump by 1.1 percent.

A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

Oil service stocks have moved significantly lower over the course of the morning, dragging the Philadelphia Oil Service Index down by 1.1 percent. The index has fallen to its lowest intraday level in a month.

The weakness among oil service stocks comes despite an increase by the price of crude oil, as crude for June delivery is rising $0.50 to $64 a barrel.

Notable weakness is also visible among computer hardware stocks, with Western Digital (WDC) posting a steep loss after the hard drive maker reported fiscal third quarter results that missed analyst estimates on both the top and bottom lines.

Steel stocks are also seeing some weakness on the day, while most of the other major sectors are showing more modest moves.

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Tuesday, as the Japanese markets remained closed. China's Shanghai Composite Index climbed by 0.5 percent, while Hong Kong's Hang Seng Index slid by 0.7 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the German DAX Index has fallen by 0.3 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are down by 0.4 percent and 0.5 percent, respectively.

In the bond market, treasuries have moved moderately higher over the course of the morning. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2 basis points at 2.516 percent.

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