News Column

Major Averages Slide Into Negative Territory In Early Trading

July 7, 2014

WASHINGTON (Alliance News) - Stocks have moved moderately lower in early trading on Monday, giving back some ground after turning in a strong performance last week. The major averages have all moved to the downside, although selling pressure has remained somewhat subdued.

The early weakness on Wall Street is partly due to profit taking, with some traders cashing in on the recent strength in the markets.

Last week's gains lifted the Dow and the S&P 500 to new record highs, while the Nasdaq reached its best levels since 2000.

Worries about the outlook for interest rates are also weighing on the markets following last Thursday's much better than expected jobs data.

Nonetheless, traders seem somewhat reluctant to make any significant moves amid the absence of any major US economic reports on the day.

Gold stocks are seeing considerable weakness, however, with the NYSE Arca Gold Bugs Index falling by 1.6%. The losses by gold stocks come amid a decrease by the price of the precious metal.

Airline, brokerage, and oil service stocks are also seeing early weakness, while most of the other major sectors have shown more modest moves to the downside.

The major averages have moved roughly sideways in recent trading, stuck in negative territory. The Dow is down 63.90 points or 0.4% at 17,004.36, the Nasdaq is down 13.65 points or 0.3% at 4,472.28 and the S&P 500 is down 6.37 points or 0.3% at 1,979.07.

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Source: Alliance News

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