News Column

Major Averages Slide Firmly Into The Red In Early Trading

July 8, 2014

WASHINGTON (Alliance News) - Stocks have come under pressure in early trading on Tuesday, adding to the losses posted in the previous session. The major averages have slid firmly into negative territory, with the Dow and the S&P 500 pulling back further off last week's record highs.

Trepidation ahead of the start of earnings season has contributed to the early weakness on Wall Street, as Alcoa (AA) is scheduled to release its second quarter results after the close of trading.

While Alcoa was dropped from the list of Dow components last year, the release of quarterly results from the aluminum giant is still seen as the unofficial start of earnings season.

Lingering concerns about the outlook for monetary policy may also be leading some traders to cash in on the recent strength in the markets.

After helping to lead the markets lower on Monday, airline stocks are seeing further downside in early trading. The NYSE Arca Airline Index has tumbled by 2.5%, hitting its lowest intraday level in well over a month.

Electronic storage, networking, biotechnology, and brokerage stocks are also moving notably lower, while gold stocks are bucking the downtrend by the broader markets.

The major averages have seen some further downside in recent trading, falling to new lows for the young session. The Dow is down 99.93 points or 0.6% at 16,924.28, the Nasdaq is down 39.67 point or 0.9% at 4,411.86 and the S&P 500 is down 10.92 points or 0.6% at 1,966.73.

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Source: Alliance News

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