News Column

Major Averages Turn Mixed In Early Trading

June 3, 2014

WASHINGTON (Alliance News) - After ending the previous session mixed, stocks are turning in another lackluster performance in early trading on Tuesday. The major averages initially moved to the downside, but selling pressure has waned since the open.

The choppy trading on Wall Street comes 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 US jobs report on Friday.

While profit taking helped to pull stocks lower at the start of trading, the major averages pared their losses following the release of a report showing a bigger than expected increase in US factory orders.

The Commerce Department said factory orders increased by 0.7% in April after jumping by an upwardly revised 1.5% in March. Economists had expected orders to climb by about 0.5%.

Most of the major sectors are currently showing only modest move, although notable weakness is visible among gold stocks. The NYSE Arca Gold Bugs Index is down by 1.1%, with the weakness in the sector coming amid a modest decrease by the price of gold.

Railroad and software stocks are also seeing some weakness in early trading, while strength has emerged among semiconductor stocks.

Currently, the major averages are turning in a mixed performance. While the Nasdaq has inched up 1.26 points or less than a tenth of a % to 4,238.45, the Dow is down 24.34 points or 0.2% at 16,719.29 and the S&P 500 is down 1.51 points or 0.1% at 1,923.46.

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Source: Alliance News

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