By RTT News, September 27, 2013, 09:55:00 AM EDT
(RTTNews.com) - Stocks are seeing early weakness during trading on Friday, moving back to the downside following the moderate rebound seen in the previous session. The major averages have all slid into negative territory, offsetting yesterday's gains.
The major averages have edged up off their lows for the young session but currently remain firmly in the red. The Dow is down 84.00 points or 0.6 percent at 15,244.30, the Nasdaq is down 18.86 points or 0.5 percent at 3,768.57 and the S&P 500 is down 8.64 points or 0.5 percent at 1,690.03.
Worries about a possible government shutdown are weighing on the markets, as lawmakers continue to wrangle over legislation to keep the government running past next Monday.
The Senate is scheduled to vote on a temporary spending bill, stripping out language from a House-passed bill that defunds Obamacare.
The legislation is expected to pass the Senate, and then the House Republican leadership would have to decide whether to bring the Senate bill up for a vote or risk a government shutdown.
Even if lawmakers manage to avoid the government shutdown, signs are pointing to another drawn out dispute over raising the debt limit.
House Speaker John Boehner, R-Ohio, has previewed upcoming House legislation that he said will tie an increase in the debt limit to spending cuts and pro-growth reforms.
However, President Barack Obama has repeatedly refused to negotiate over raising the debt limit and risk a government default.
On the economic front, the Commerce Department released a report showing that U.S. personal income and spending both rose in line with estimates in August.
Airline stocks have shown a notable move to the downside in early trading, dragging the NYSE Arca Airline Index down by 1.9 percent. The index is giving back ground after ending the previous session at its best closing level in well over six years.
Steel, biotechnology, and telecom stocks have also come under pressure, moving lower along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Friday. Hong Kong's Hang Seng Index and Australia's All Ordinaries Index rose by 0.4 percent and 0.3 percent, respectively. However, Japan's Nikkei 225 Index bucked the uptrend and fell by 0.3 percent.
Meanwhile, the major European markets have moved to the downside on the day. While the U.K.'s FTSE 100 Index has dropped by 0.9 percent, the German DAX Index and the French CAC 40 Index are down by 0.2 percent and 0.1 percent, respectively.
In the bond market, treasuries are showing a lack of direction after giving back some ground on Thursday. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 2.635 percent.
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