After showing only modest moves early in the session, stocks continue to turn in a lackluster performance in mid-day trading on Tuesday. Despite the choppy trading, the tech-heavy Nasdaq reached a new intraday record high.
Currently, the major averages remain on opposite sides of the unchanged line. While the Nasdaq is up 26.53 points or 0.2 percent at 14,014.18, the Dow is down 30.63 points or 0.1 percent at 31,355.13 and the S&P 500 is down 5.07 points or 0.1 percent at 3,910.52.
Traders seem to be taking a breather following the advance seen in recent days, which drove the major averages to new record closing highs on Monday.
The Dow and the S&P 500 have both closed higher for six consecutive sessions, while the Nasdaq has risen in five out of the past six sessions.
Profit taking contributed to some initial weakness on Wall Street, although selling pressure was relatively subdued as traders worry about missing out on further upside.
Optimism about more fiscal stimulus has also helped support the markets along with the recent slowdown in coronavirus infection rates.
House Democrats have unveiled a proposal providing $1,400 stimulus checks to individuals making up to $75,000 a year and couples who earn up to $150,000 a year.
Those income levels are unchanged from previous stimulus checks, although the proposal would phase out payments faster than previous bills and completely cut off individuals making more than $100,000 and couples making more than $200,000.
Among individual stocks, shares of Glu Mobile (GLUU) have moved sharply higher after the mobile game developer agreed to be acquired by Electronic Arts (EA) for $12.50 per share in cash.
Apparel maker HanesBrands (HBI) is also seeing substantial strength after reporting fourth quarter results that exceeded analyst estimates on both the top and bottom lines.
On the other hand, shares of Coty (COTY) have come under pressure after the cosmetics company reported fiscal second quarter adjusted earnings that beat estimates but its revenues came in slightly below expectations.
Sector News
Reflecting the lackluster performance by the broader markets, most of the major sectors continue to show only modest moves in mid-day trading.
Energy stocks continue to see considerable weakness, however, with traders cashing in on recent strength in the sector despite an uptick by the price of crude oil.
Significant weakness also remains visible among airline stocks, which are also giving back ground after trending higher in recent sessions.
The NYSE Arca Airline Index is down by 1.8 percent after ending the previous session at its best closing level in almost a year.
Housing and steel stocks have also moved to the downside on the day, while tobacco stocks are extending a recent upward trend.
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 rose by 0.4 percent, while Australia’s S&P/ASX 200 Index slid by 0.9 percent.
The major European markets also finished the day on opposite sides of the unchanged line. While the German DAX Index fell by 0.3 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index both inched up by 0.1 percent.
In the bond market, treasuries are seeing further upside after turning higher over the course of the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.7 basis points at 1.143 percent.
U.S. Stocks Remain Little Changed In Mid-Day Trading
2021-02-09 17:01:58
