Stocks Close Slightly Lower Following Late-Day Pullback - U.S. Commentary

(RTTNews) - After seeing moderate strength for much of the session, stocks came under pressure going into the close of trading on Tuesday. The pullback on the day came on the heels of the rebound that was seen over the course of the previous session.

The major averages all closed in negative territory, although the Dow edged down only 5.43 points or less than a tenth of a percent to 17,875.42. The Nasdaq dipped 7.08 points or 0.1 percent to 4,910.23, while the S&P 500 slipped 4.29 points or 0.2 percent to 2,076.33.

The strength seen for most of the day came as traders expressed continued optimism about the outlook for interest rates following last Friday's disappointing jobs report.

Recent economic data pointing to weakness in the first quarter has led to speculation that the Federal Reserve will delay its planned increase in rates.

However, traders seemed reluctant to make significant moves as they looked ahead to the release of minutes of the latest Federal Reserve meeting on Wednesday.

The minutes could shed some additional light on the outlook for interest rates, although it is worth noting that the meeting came before the weak jobs data.

While stocks subsequently gave back ground late in the trading session, selling pressure remained relatively subdued.

Among individual stocks, shares of Ocular Therapeutix (OCUL) came under pressure on the day after the company said its lead eye drug failed to meet a primary goal in a late-stage study.

Media giant Viacom (VIAB) also moved lower after saying it will suspend its stock buyback program and record a $785 million pre-tax charge as part of a strategic realignment.

On the other hand, shares of Informatica (INFA) moved notably higher after the software company agreed to be acquired by Permira and the Canada Pension Plan Investment Board for approximately $5.3 billion.

Delivery giant FedEx (FDX) also moved to the upside after announcing a deal to buy Dutch package delivery company TNT Express for $4.8 billion in cash.

Sector News

While many of the major sectors ended the day showing only modest moves, significant weakness was visible among gold stocks. Reflecting the weakness in the gold sector, the NYSE Arca Gold Bugs Index tumbled by 2.1 percent.

The weakness among gold stocks came amid a decrease by the price of the precious metal, with gold for June delivery sliding $8 to $1,210.60 an ounce.

Housing stocks also came under pressure over the course of the trading session, dragging the Philadelphia Housing Sector Index down by 1.7 percent. With the loss, the index pulled back further off the nearly eight-year closing high it set last Friday.

Commercial real estate and utilities stocks also moved to the downside on the day, while strength remained visible among steel and railroad stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index jumped by 1.3 percent, while China's Shanghai Composite Index soared by 2.5 percent.

The major European markets also moved notably higher following a long weekend. While the U.K.'s FTSE 100 Index surged up by 1.9 percent, the French CAC 40 Index and the German DAX Index jumped by 1.5 percent and 1.3 percent, respectively.

In the bond market, treasuries closed modestly higher following a three-year note auction. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.1 basis points to 1.893 percent.

Looking Ahead

The Fed minutes are likely to be in focus on Wednesday but are not due to be released until late in the session, potentially leading to a choppy trading for much of the day.