Major Averages Slide Firmly Into Negative Territory In Early Trading

(RTTNews) - After moving mostly higher over the course of the previous session, stocks have shown a notable move back to the downside during early trading on Thursday. The major averages have all slid firmly into negative territory.

The early weakness on Wall Street is partly due to renewed concerns about the economic outlook following the release of a Commerce Department report showing weaker than expected spending growth in the month of May.

Following yesterday's report showing a sharp downward revision to the pace of consumer spending growth in the first quarter, the data has raised some questions about the second quarter recovery.

The report also showed a notable acceleration in the pace of consumer price growth, adding to recent worries about inflation.

Brokerage stocks have shown a significant moves to the downside in early trading, dragging the NYSE Arca Broker/Dealer Index down by 1.2 percent. KCG Holdings (KCG), Charles Schwab (SCHW) and Piper Jaffray (PJC) are leading the way lower.

Tobacco, banking, and trucking stocks are also seeing considerable weakness, moving lower along with most of the other major sectors.

The major averages have edged up off their lows in the past few minutes but remain firmly in the red. The Dow is down 116.84 points or 0.7 percent at 16,750.67, the Nasdaq is down 24.98 points or 0.6 percent at 4,354.77 and the S&P 500 is down 12.81 points or 0.7 percent at 1,946.72.