Currently, the major averages are posting modest losses on the day. The Dow is down 52.37 points or 0.3% at 16,663.07, the Nasdaq is down 6.36 points or 0.2% at 4,123.80 and the S&P 500 is down 3.87 points or 0.2% at 1,893.58.
The early weakness on
Troubling inflation data is also weighing on the markets, with a report from the
Core producer prices, which exclude food and energy, also showed continued growth, climbing by 0.5% in April after rising by 0.6% in March. Core prices had been expected to rise by 0.2%.
"While certainly different from consumer prices in terms of market reaction and Fed policy, we've now seen 2 months in a row of sharp gains in wholesale pricing that bears watching especially in an environment where many don't think we have any inflation," said
He added, "We actually have seen massive monetary inflation that has showed up in asset prices of all kinds but hasn't yet spilled into the conventional PPI, CPI, PCE figures until maybe now?"
Uncertainty about the near-term outlook for the markets has helped to limit the downside for the markets, however, with traders likely looking ahead to the release of a slew of key economic data on Thursday.
Financial and transportation stocks are seeing some weakness in early trading, although most of the major sectors are showing only modest moves.
Among individual stocks, shares of Fossil (FOSL) are moving sharply lower in early trading after the fashion accessory maker reported better than expected first quarter results but provided disappointing second quarter guidance.
Video game publisher Take-Two Interactive (TTWO) has also come under pressure after forecasting a wider than expected fiscal first quarter loss.
On the other hand, shares of
In overseas trading, stock markets across the
Meanwhile, the major European markets are all seeing modest weakness on the day. While the German DAX Index is just below the unchanged line, the
In the bond market, treasuries have shown a strong move to the upside, extending the upward move seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 5.9 basis points at 2.559%.
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