Following the lackluster performance in the previous session, stocks continue to experience choppy trading on Tuesday. The major averages have spent the morning bouncing back and forth across the unchanged line.
Currently, the major averages are narrowly mixed. While the Dow is down 3.00 points or less than a tenth of a percent at 33,559.86, the Nasdaq is up 13.62 points or 0.1 percent at 13,243.05 and the S&P 500 is up 3.74 points or 0.1 percent at 4,277.53.
Traders remain reluctant to make significant moves as they continue to look ahead to next week’s Federal Reserve meeting.
The Fed is due to announce its latest monetary policy decision next Wednesday, with the central bank widely expected to pause its recent series of interest rate hikes.
Key inflation reports are also likely to be in the spotlight next week, as the data could impact whether the Fed resumes its rate hikes next month.
A lack of major U.S. economic data may also be keeping traders on the sidelines, although reports on the U.S. trade deficit and weekly jobless claims may attract some attention in the coming days.
Among individual stocks, shares of GitLab (GTLB) have soared after the software development platform company reported a narrower than expected fiscal first quarter loss on revenues that exceeded analyst estimates.
Recreational vehicle manufacturer Thor Industries (THO) has also surged after reporting fiscal third quarter results that beat expectations and raising its full-year earnings guidance.
On the other hand, Coinbase (COIN) is seeing significant weakness after the SEC charged the company with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency.
While most of the major sectors are showing only modest moves, banking stocks have moved sharply higher, driving the KBW Bank Index up by 2.5 percent to its best intraday level in a month.
Significant strength is also visible among housing stocks, as reflected by the 1.9 percent jump by the Philadelphia Housing Sector Index. The index has reached its best intraday level in well over a year.
Tobacco, airline and steel stocks are also seeing considerable strength on the day, while networking stocks are extending the sharp pullback seen on Monday.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index jumped by 0.9 percent, while China’s Shanghai Composite Index tumbled by 1.2 percent.
Meanwhile, the major European markets have moved modestly higher on the day. While the French CAC 40 Index has inched up by 0.1 percent, the German DAX Index and the U.K.’s FTSE 100 Index are both up by 0.2 percent.
In the bond market, treasuries have moved to the downside after ending the previous session roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.5 basis points at 3.718 percent.
Source: Read Full Article