Stocks Close Mixed For Second Consecutive Session - U.S. Commentary

(RTTNews) - Stocks turned in another relatively lackluster performance during trading on Tuesday before eventually ending the day mixed. The major averages closed on opposite sides of the unchanged line for the second consecutive session.

The tech-heavy Nasdaq closed higher for the sixth straight session, climbing 20.00 points or 0.4 percent to a new record closing high of 5,551.82. The S&P 500 ended the day unchanged at 2,269.90, while the Dow dipped 31.85 points or 0.2 percent to 19,855.53.

The choppy trading on Wall Street came as traders seemed reluctant to make significant moves amid uncertainty about the near-term outlook for the markets.

Traders also continue to keep an eye on the performance by the Dow, which climbed within striking distance of 20,000 but was once again unable to break through that key psychological level.

The lackluster performance also came amid a relatively quiet day on the U.S. economic front, with traders looking ahead to reports on producer prices and retail sales due on Friday.

Financial giants Bank of America (BAC), JPMorgan (JPM) and Wells Fargo (WFC) are also due to report their quarterly results later this week.

Among individual stocks, shares of Pacific Continental (PCBK) moved sharply higher after the regional bank agreed to be acquired by Columbia Banking System (COLB) for approximately $644.1 million.

Valeant Pharmaceuticals (VRX) also posted a strong gain after announcing an agreement to sell its CeraVe, AcneFree and AMBI skincare brands to L'Oréal for $1.3 billion in cash.

Meanwhile, shares of WD-40 (WDFC) came under pressure after the lubricant maker reported weaker than expected first quarter results.

Sector News

While many of the major sectors ended the day showing only modest moves, steel stocks showed a substantial move to the upside. The NYSE Arca Steel Index surged up by 4.9 percent to its best closing level in almost a month.

Mechel (MTL), Cliffs Natural Resources (CLF), and Olympic Steel (ZEUS) turned in some of the steel sector's best performances.

Considerable strength was also visible among airline stocks, as reflected by the 2.4 percent gain posted by the NYSE Arca Airline Index. The rebound by the index came after it ended the previous session at a one-month closing low.

On the other hand, oil service stocks came under pressure as the day progressed amid another steep drop by the price of crude oil. Reflecting the weakness in the oil service sector, the Philadelphia Oil Service Index slumped by 1.5 percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index advanced by 0.8 percent, while Hong Kong's Hang Seng Index fell by 0.8 percent.

Meanwhile, the major European markets all moved to the upside on the day. While the French CAC 40 Index closed just above the unchanged line, the German DAX Index edged up by 0.2 percent and the U.K.'s FTSE 100 Index rose by 0.5 percent.

In the bond market, treasuries showed a lack of direction before ending the session nearly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 2.379 percent.

Looking Ahead

Trading activity on Wednesday may remain relatively subdued amid another quiet day on the U.S. economic calendar.