Major Averages Bounce Off Early Lows But Remain In The Red

(RTTNews) - Stocks showed an initial move to the downside on Tuesday, but selling pressure waned not long after the open. The major averages have subsequently climbed well off their lows for the young session but remain in negative territory.

The initial weakness on Wall Street was partly due to continued concerns about Greece and the possibility of a default by the debt-ridden nation.

The major averages did not see much follow through on the early drop, however, as traders seemed reluctant to make significant moves ahead of the release of some key economic data in the coming days.

The subsequent recovery attempt by the markets may partly have reflected comments by Federal Reserve Governor Lael Brainard.

Brainard said the Fed's first interest rate hike could come before the end of the year but said the case for liftoff is not imminent amid signs of continued economic weakness in the second quarter.

Despite the rebound by the broader markets, notable weakness remains visible among utilities stocks. Reflecting the weakness in the sector, the Dow Jones Utilities Average is falling by 1.8 percent.

Commercial real estate stocks are also seeing continued weakness, while strength has emerged among steel, oil service, and gold stocks.

Currently, the major averages are just below the unchanged line. The Dow is down 10.48 points or 0.1 percent at 18,029.89, the Nasdaq is down 4.33 points or 0.1 percent at 5,078.60 and the S&P 500 is down 2.45 points or 0.1 percent at 2,109.28.