News Column

Major Averages Turn Mixed After Seeing Initial Strength

July 15, 2014

WASHINGTON (Alliance News) - After failing to sustain an initial upward move, stocks have shown a lack of direction over the course of early trading on Tuesday. The major averages have pulled back off their early highs and are now turning in a mixed performance.

Stocks initially reacted positively to the latest batch of US economic data, including a closely watched report on retail sales.

While the sales growth in June fell well short of economist estimates, upward revisions to the two previous months and strong core numbers generated some positive sentiment.

However, buying interest waned not long after the open due in part to troubling remarks by Federal Reserve Chair Janet Yellen.

In testimony before the Senate Banking Committee, Yellen said the Fed may raise interest rates sooner than expected if the recovery in the US labor market is sustained.

Despite the subsequent pullback by the broader markets, banking stocks continue to turn in a strong performance on the day. JP Morgan (JPM) is posting a standout gain after reporting better than expected second quarter results.

Trucking and steel stocks also continue to see some strength, while tobacco and biotechnology stocks have come under pressure.

Currently, the Dow is clinging to a modest gain, up 18.64 points or 0.1% at 17,074.06, while the Nasdaq is down 12.29 points or 0.3% at 4,428.12. The S&P 500 is flat at 1,977.10.

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Source: Alliance News

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