Stocks Showing A Lack Of Direction In Early Trading - U.S. Commentary

(RTTNews) - Stocks are turning in a lackluster performance in early trading on Tuesday after failing to sustain an initial upward move. The major averages have turned mixed on the day, with the tech-heavy Nasdaq pulling back into negative territory.

Currently, the major averages remain on opposite sides of the unchanged line. While the Nasdaq is down 8.72 points or 0.2 percent at 5,031.06, the Dow is up 38.95 points or 0.2 percent at 17,479.54 and the S&P 500 is up 4.44 points or 0.2 percent at 2,072.08.

The choppy trading on Wall Street comes as traders seem reluctant to make significant moves as the Federal Reserve's two-day monetary policy meeting gets underway.

The Fed is due to announce its latest monetary policy decision on Wednesday, with many analysts expecting the central bank to hint at a rate hike in September.

Traders are also digesting a report from the Conference Board showing a substantial deterioration in U.S. consumer confidence in the month of July.

The Conference Board said its consumer confidence index tumbled to 90.9 in July from a downwardly revised 99.8 in June. Economists had expected the index to show a much more modest decrease to a reading of 99.6.

Lynn Franco, Director of Economic Indicators at the Conference Board, said, "A less optimistic outlook for the labor market, and perhaps the uncertainty and volatility in financial markets prompted by the situation in Greece and China, appears to have shaken consumers' confidence."

"Overall, the Index remains at levels associated with an expanding economy and a relatively confident consumer," she added.

Most of the major sectors are showing only modest moves in early trading, although considerable strength has emerged among steel stocks. The NYSE Arca Steel Index is up by 1.9 percent, bouncing off a six-year closing low.

Transportation, tobacco, and energy stocks are also seeing some early strength, while software and electronic storage stocks have moved to the downside.

In overseas trading, most stock markets across the Asia-Pacific region moved lower on Tuesday. Japan's Nikkei 225 Index edged down by 0.1 percent, while China's Shanghai Composite Index tumbled by 1.7 percent. However, Hong Kong's Hang Seng Index bucked the downtrend and rose by 0.6 percent.

Meanwhile, the major European markets are seeing some strength on the day. While the U.K.'s FTSE 100 Index is up by 0.4 percent, the French CAC 40 Index is up by 0.5 percent and the German DAX Index is up by 0.6 percent.

In the bond market, treasuries are giving back some ground after trending higher over the past several sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.6 basis points at 2.254 percent.