Major Averages Posting Moderate Losses In Early Trading

(RTTNews) - Stocks have moved moderately lower in early trading on Tuesday, partly offsetting the strong gains posted in the previous session. The major averages have slid into negative territory but remain well off their recent lows.

The early weakness on Wall Street is partly due to profit taking following yesterday's rally, with stocks extending the volatility seen in recent weeks.

Renewed worries about the outlook for interest rates are also weighing on the markets following remarks by Richmond Federal Reserve Bank President Jeffrey Lacker.

In a speech to the Greater Richmond Chamber of Commerce, Lacker said he believes a strong case can be made for an increase in interest rates relatively soon.

Traders are also digesting a mixed batch of economic data, as separate reports showed a continued contraction in Chicago business activity but a notable rebound in U.S. consumer confidence.

Steel stocks have shown a significant move to the downside in early trading, dragging the NYSE Arca Steel Index down by 1.7 percent. The index is lingering near its lowest levels in nearly six years.

Computer hardware, tobacco, and airline stocks are also seeing early weakness, although most of the major sectors are showing only modest moves.

In recent trading, the major averages have climbed off their lows for the young session, but they remain in the red. The Dow is down 76.97 points or 0.4 percent at 17,899.34, the Nasdaq is down 17.61 points or 0.4 percent at 4,929.83 and the S&P 500 is down 6.40 points or 0.3 percent at 2,079.84.