Major Averages Close Firmly Negative, Just Off Worst Levels

(RTTNews) - After initially showing a lack of direction, stocks saw considerable weakness over the course of the trading day on Wednesday. The pullback on the day came on the heels of the rally seen in the previous session, which lifted the Nasdaq to a four-month closing high.

Most of the major sectors moved to the downside on the day, reflecting broad based selling pressure on Wall Street.

Substantial weakness was visible among energy stocks, which moved sharply lower along with the price of crude oil. Crude for January delivery plunged by $1.91 to $39.94 a barrel, closing below $40 a barrel for the first time since August.

Reflecting the weakness in the energy sector, the NYSE Arca Natural Gas Index plunged by 4 percent, while the Philadelphia Oil Service Index and the NYSE Arca Oil & Gas Index slumped by 3.2 percent and 2.6 percent, respectively.

Trucking stocks also showed a steep drop, dragging the Dow Jones Trucking Index down by 3.4 percent. With the drop, the index fell to its lowest closing level in three months.

C.H. Robinson (CHRW), YRC World (YRCW), and Heartland Express (HTLD) turned in some of the trucking sector's worst performances.

Railroad, gold and utilities stocks also saw considerable weakness on the day, while oil-sensitive airline stocks were among the few groups to buck the downtrend.

The major averages closed firmly in negative territory, not far off their worst levels of the day. The Dow slid 158.67 points or 0.9 percent to 17,729.68, the Nasdaq fell 33.08 points or 0.6 percent to 5,123.22 and the S&P 500 tumbled 23.12 points or 1.1 percent to 2,079.51.