Dow Showing Strong Upward Move But Nasdaq Posting Modest Loss
(RTTNews) - While the Dow has shown a strong move to the upside during trading on Tuesday, the broader Nasdaq and S&P 500 have shown a lack of direction over the course of the session.
Currently, the Dow is up 296.36 points or 1.1 percent at 26,382.16 and the S&P 500 is up 12.36 points or 0.4 percent at 3,167.58.
Meanwhile, weakness among technology stocks continues to weigh on the Nasdaq, which is currently down 25.35 points or 0.2 percent at 10,365.50.
Energy stocks have moved sharply higher over the course of the trading session, as the price of crude oil has turned higher after seeing early weakness.
After falling as low as $39.07 a barrel in early trading, crude for August delivery is currently rising $0.26 to $40.36 a barrel.
Reflecting the strength in the energy sector, the Philadelphia Oil Service Index is up by 4 percent, the NYSE Arca Oil Index is up by 3 percent and the NYSE Arca Natural Gas Index is up by 2.6 percent.
Energy giants Chevron (CVX) and Exxon Mobil (XOM) are posting notable gains, contributing to the advance by the Dow.
Significant strength has also emerged among gold stocks, as reflected by the 2.5 percent jump by the NYSE Arca Gold Bugs Index.
The rally by gold stocks comes despite a modest decrease by the price of the precious metal, with gold for August delivery slipping $1.10 to $1,813 an ounce.
Steel, housing, chemical and networking stocks are also seeing considerable strength on the day, while banking stocks have shown a notable move to the downside.
Within the banking sector, shares of Wells Fargo (WFC) have come under pressure after the banking giant reported a wider than expected second quarter loss and slashed its dividend.
In U.S. economic news, the Labor Department released a report showing consumer prices increased by slightly more than expected in June amid a substantial rebound in gasoline prices.
The Labor Department said its consumer price index climbed by 0.6 percent in June after edging down by 0.1 percent in May. Economists had expected consumer prices to rise by 0.5 percent.
Excluding higher prices for food and energy, the core consumer price index ticked up by 0.2 percent in June after slipping by 0.1 percent in May. Core prices were expected to inch up by 0.1 percent.
In overseas trading, most stock markets across the Asia-Pacific region moved to the downside trading on Tuesday. Japan's Nikkei 225 Index slid by 0.9 percent, while China's Shanghai Composite Index fell by 0.8 percent.
European stocks also moved mostly lower on the day, although the U.K.'s FTSE 100 Index bucked the downtrend and inched up by 0.1 percent. The German DAX Index slumped by 0.8 percent, while the French CAC 40 Index tumbled by 1 percent.
In the bond, treasuries have moved higher after ending the previous session little changed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.6 basis points at 0.604 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.