Major Averages Close Firmly In The Red But Off Worst Levels

(RTTNews) - After moving sharply lower at the start of trading on Tuesday, stocks remained stuck firmly in negative territory throughout the trading session. The losses on the day more than offset Monday's modest gains, with the Nasdaq snapping its six-day winning streak.

A negative reaction to earnings news from several big-name companies contributed to the initial sell-off on Wall Street.

Shares of Microsoft (MSFT) showed a particularly steep drop after the software giant reported second quarter earnings that matched analyst estimates but provided disappointing guidance. Microsoft plummeted 9.3 percent on the day.

With Microsoft leading the way lower, software stocks saw substantial weakness on the day. Reflecting the weakness in the sector, the Dow Jones Software Index plunged by 5.1 percent.

Significant weakness was also visible among semiconductor stocks, as reflected by the 1.9 percent loss posted by the Philadelphia Semiconductor Index. Industry giant Intel (INTC) turned in one of the sector's worst performances, tumbling by 4.5 percent.

Internet, computer hardware, telecom, and transportation stocks also saw considerable weakness, moving lower along with most of the other major sectors.

Meanwhile, gold stocks were among the few groups to buck the downtrend, with the NYSE Arca Gold Bugs Index jumping by 3.8 percent. The strength in the sector came as gold for February delivery climbed $12.30 to $1,291.70 an ounce.

The major averages ended the session off their worst levels of the day but still posted steep losses. The Dow tumbled 291.49 points or 1.7 percent to 17,387.21, the Nasdaq plunged 90.27 points or 1.9 percent to 4,681.50 and the S&P 500 slumped 27.54 points or 1.3 percent to 2,029.55.