Stocks Close Mixed After Recovering From Initial Weakness - U.S. Commentary

(RTTNews) - After recovering from an early move to the upside, stocks showed a lack of direction over the course of the trading session on Tuesday. The major averages bounced back and forth across the unchanged line before ending the day mixed.

While the tech-heavy Nasdaq climbed 12.79 points or 0.3 percent to a more than two-month closing high of 4,821.66, the Dow dipped 41.30 points or 0.2 percent to 17,582.57 and the S&P 500 edged down 1.80 points or 0.1 percent to 2,049.80.

The initial weakness on Wall Street came on the heels of news that at least 34 people have been killed and more than 200 people have been injured in a terrorist attack in the Belgian capital of Brussels.

Two explosions occurred at the Zaventem airport just outside the city and were followed by an explosion at a downtown subway station near the European quarter.

The news led to an increase in geopolitical concerns, although selling pressure waned not long after the start of trading.

The choppy trading seen throughout the session afterward came as some traders are already away from their desks ahead of the Easter holiday.

A lack of major U.S. economic data also kept some traders on the sidelines ahead of reports on new home sales and durable goods orders in the coming days.

Among individual stocks, shares of G-III Apparel (GIII) fell sharply after the clothing and accessories maker reported weaker than expected fourth quarter results and provided disappointing guidance.

Mattress retailer Mattress Firm (MFRM) also came under pressure after reporting fourth quarter results that missed estimates and forecasting first quarter earnings below expectations.

On the other hand, shares of Akorn (AKRX) showed a strong upward move after the generic pharmaceutical company provided preliminary full year 2015 financial results.

Sector News

Mirroring the performance seen in the previous session, most of the major sectors ended the day showing only modest moves.

However, biotechnology stocks once again showed a strong move to the upside. The NYSE Arca Biotechnology Index surged up by 2.7 percent, climbing further off last Thursday's one-month closing low.

Agios Pharmaceuticals (AGIO), Celldex Therapeutics (CLDX), and Neurocrine Biosciences (NBIX) turned in some of the biotech sector's best performances.

On the other hand, oil service stocks came under pressure, dragging the Philadelphia Oil Service Index down by 1.5 percent. The weakness in the sector came as crude oil for May delivery edged down $0.07 to $41.45 a barrel.

Railroad and tobacco stocks also moved to the downside on the day, although selling pressure remained relatively subdued.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Tuesday. Japan's Nikkei 225 Index surged up by 1.9 percent, while China's Shanghai Composite Index fell by 0.6 percent.

Meanwhile, the major European markets all moved to the upside as the day progressed. While the German DAX Index rose by 0.4 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index both edged up by 0.1 percent.

In the bond market, treasuries turned lower over the course of the session after seeing early strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1.2 basis points to 1.935 percent after hitting a low of 1.884 percent.

Looking Ahead

Trading on Wednesday may be impacted by the Commerce Department's report on new home sales in the month of February.

New home sales are expected to rise to an annual rate of 510,000 in February after tumbling to a rate of 494,000 in January.