U.S. Stocks Turning In Lackluster Performance Following Recent Strength

Stocks are turning in a lackluster performance in morning trading on Tuesday following the strong upward move seen over the past several sessions. Despite the choppy trading, the tech-heavy Nasdaq has reached a new record high.

Currently, the major averages are on opposite sides of the unchanged line. While the Nasdaq is up 43.12 points or 0.3 percent at 14,030.76, the Dow is down 62.88 points or 0.2 percent at 31,322.88 and the S&P 500 is down 2.15 points or 0.1 percent at 3,913.44.

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.

Most of the major sectors are showing only modest moves, although oil service stocks have come under pressure amid a pullback by the price of crude oil.

With crude for March delivery slipping $0.22 to $57.75 a barrel after reaching its highest closing level in over a year on Monday, the Philadelphia Oil Service Index has tumbled by 2.8 percent.

Airline stocks are also giving back ground, with the NYSE Arca Airline Index slumping by 1.7 percent after ending the previous session at its best closing level in almost a year.

Steel and oil producer stocks are also seeing notable weakness on the day, while tobacco stocks are extending a recent upward trend.

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.

Meanwhile, European stocks have moved mostly lower on the day, with the pan-European Stoxx 600 Index edging down by 0.2 percent. The German DAX Index has also fallen by 0.5 percent, while the U.K.’s FTSE 100 Index and the French CAC 40 Index are both nearly unchanged.

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 1.3 basis points at 1.147 percent.