Major Averages Close In The Red, Nasdaq Underperforms

(RTTNews) - Stocks moved mostly lower during trading on Wednesday, as traders once again reacted negatively to the latest earnings news. The tech-heavy Nasdaq showed a notable decline, pulling back further off the record closing high set on Monday.

Reflecting concerns about the outlook for the tech sector, semiconductor stocks saw substantial weakness on the day. The Philadelphia Semiconductor Index plunged by 2.5 percent but still ended the session well off its worst levels.

Linear Technology (LLTC) turned in one of the semiconductor sector's worst performances after reporting weaker than expected fourth quarter results and providing disappointing guidance.

Steel stocks also came under considerable selling pressure over the course of the session, dragging the NYSE Arca Steel Index down by 2.5 percent. The drop pulled the index down to a six-year closing low.

The weakness among steel stocks was partly due to news that BHP Billiton (BHP) forecast an increase in iron ore production in fiscal 2016.

Significant weakness was also visible among oil service stocks, which moved lower along with the price of crude oil. With crude for September delivery tumbling $1.67 to $49.19 a barrel, the Philadelphia Oil Service Index dropped by 1.7 percent.

Software, natural gas and telecom stocks also saw notable weakness, while housing and banking stocks bucked the downtrend.

The major averages ended the day in negative territory but off their lows for the session. While the Nasdaq slid 36.35 points or 0.7 percent to 5,171.77, the Dow fell 68.25 points or 0.4 percent to 17,851.04 and the S&P 500 edged down 5.06 points or 0.2 percent to 2,114.15.