By RTT News,
June 03, 2014, 12:19:00 PM EDT
(RTTNews.com) - While selling pressure has remained relatively subdued, stocks are seeing modest weakness in mid-day trading on Tuesday. The pullback on the day comes on the heels of the upward trend shown by the markets over the past several sessions.
The major averages have recently climbed off their lows for the session but remain in the red. The Dow is down 22.47 points or 0.1 percent at 16,721.16, the Nasdaq is down 9.96 points or 0.2 percent at 4,227.24 and the S&P 500 is down 2.29 points or 0.1 percent at 1,922.68.
Profit taking has likely contributed to the modest weakness on Wall Street, with the Dow and the S&P 500 giving back some ground after ending yesterday's trading at new record closing highs.
Activity has remained light however, as traders seem reluctant to make any significant moves ahead of the European Central Bank meeting on Thursday and the release of the closely watched monthly U.S. jobs report on Friday.
A Commerce Department report showing a bigger than expected increase in U.S. factory orders may also be helping to limit the downside for the markets.
The report said factory orders increased by 0.7 percent in April after jumping by an upwardly revised 1.5 percent in March. Economists had expected orders to climb by about 0.5 percent.
The factory orders report does not typically attract much attention due to the volatility of the data and the fact that it is usually viewed as old news.
Among individual stocks, shares of Quiksilver ( ZQK ) are seeing substantial weakness on the day after the sports apparel and footwear retailer reported a much wider than expected second quarter loss on a bigger than expected drop in sales.
Doughnut maker Krispy Kreme ( KKD ) has also come under pressure after the company reported first quarter earnings in line with estimates but cut its full-year earnings guidance.
On the other hand, shares of Hillshire Brands ( HSH ) are moving notably higher on news that Pilgrim's Pride ( PPC ) has raised its offer to acquire the meat producer to $55 per share.
A majority of the major sectors have moved to the downside on the day, although most are showing only modest moves.
Railroad stocks are seeing notable weakness in mid-day trading, however, with the Dow Jones Railroads Index down by 1.2 percent. The index is giving back some ground after ending the previous session at a record closing high.
Software, brokerage, and gold stocks are also seeing some weakness on the day, while modest strength is visible among semiconductor stocks.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index and Hong Kong's Hang Seng Index advanced by 0.7 percent and 0.9 percent, respectively, while Australia's All Ordinaries Index dropped by 0.7 percent.
Meanwhile, the major European markets all moved to the downside on the day. While the U.K.'s FTSE 100 Index fell by 0.4 percent, the German DAX Index and French CAC 40 Index both ended the day down by 0.3 percent.
In the bond market, treasuries are moving moderately lower, pulling back further off their recent highs. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.9 basis points at 2.563 percent.
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