30.08.2016 18:03:47
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Stocks Continue To See Moderate Weakness In Mid-Day Trading - U.S. Commentary
(RTTNews) - While selling pressure has remained somewhat subdued, stocks are seeing moderate weakness in mid-day trading on Tuesday. The losses on the day have partly offset the strength that was seen in the previous session.
The major averages have moved roughly sideways in recent trading, stuck in negative territory. The Dow is down 55.34 points or 0.3 percent at 18,447.65, the Nasdaq is down 12.85 points or 0.3 percent at 5,219.48 and the S&P 500 is down 4.73 points or 0.2 percent at 2,175.65.
Uncertainty about the outlook for interest rates may be weighing on the markets ahead of the release of the closely watched monthly jobs report on Friday.
The employment report for August could have a significant impact on expectations for the next Federal Reserve meeting in September.
The report is expected to show an increase of about 175,000 jobs in August after a jump of 255,000 jobs in July. The unemployment rate is expected to edge down to 4.8 percent from 4.9 percent.
In a highly anticipated speech last Friday, Fed Chair Janet Yellen said she believes the case for raising interest rates has strengthened in recent months.
The Conference Board released a report this morning showing a significant improvement in consumer confidence in the month of August.
The consumer confidence index jumped to 101.1 in August from a downwardly revised 96.7 in July, reaching its highest level since last September.
Economists had expected the index to come in unchanged compared to the 97.3 originally reported for the previous month.
A separate report released by Standard & Poor's showed an unexpected slowdown in the pace of home price growth in major metropolitan areas in the month of June.
Sector News
Gold stocks have shown a substantial move to the downside on the day, dragging the NYSE Arca Gold Bugs Index down by 2.8 percent. The index has fallen to its lowest intraday level in over two months.
The steep drop by gold stocks comes amid a decrease by the price of the precious metal, with gold for December delivery sliding $6.50 to $1,320.60 an ounce.
Significant weakness has also emerged among steel stocks, as reflected by the 1.2 percent drop by the NYSE Arca Steel Index. The index is giving back ground after yesterday's 2.2 percent jump.
On the other hand, airline stocks are seeing considerable strength in mid-day trading, with the NYSE Arca Airline Index up by 1.8 percent.
United Continental (UAL) is leading the airline sector higher after the industry giant announced the appointment of former American Airlines (AAL) executive Scott Kirby as its president.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in yet another mixed performance during trading on Tuesday. While Japan's Nikkei 225 Index edged down by 0.1 percent, Hong Kong's Hang Seng Index jumped by 0.9 percent.
The major European markets also finished the day mixed. While the U.K.'s FTSE 100 Index dipped by 0.3 percent, the French CAC 40 Index advanced by 0.8 percent and the German DAX Index surged up by 1.1 percent.
In the bond market, treasuries are turning in a lackluster performance following the rebound seen on Monday. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 1.570 percent.

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