Stocks Turning In Lackluster Performance In Early Trading - U.S. Commentary

(RTTNews) - After moving higher at the open, stocks have shown a lack of direction over the course of early trading on Tuesday. The major averages have been bouncing back and forth across the unchanged line, unable to sustain any significant moves.

Currently, the major averages are turning in a mixed performance. While the Dow is down 21.37 points or 0.1 percent at 17,127.57, the Nasdaq is up 5.99 points or 0.1 percent at 4,909.07 and the S&P 500 is up 0.85 points or less than a tenth of a percent at 2,013.51.

The choppy trading on Wall Street comes as traders express some uncertainty about the outlook for the markets following the sell-off seen in the previous session.

A lack of major U.S. economic data may also be keeping some traders on the sidelines ahead of the release of some key economic reports in the coming days.

The monthly jobs report due on Friday is likely to be in the spotlight, although traders are also likely to keep an eye on reports on private sector employment, international trade and service sector activity.

The minutes of the latest Federal Reserve meeting are also likely to attract attention, as the central bank raised interest rates for the first time in nearly a decade following the meeting.

While most of the major sectors are showing only modest moves, substantial weakness is visible among oil service stocks. The Philadelphia Oil Service Index is down by 2.1 percent after bucking the downtrend on Monday.

The weakness among oil service stocks comes amid a decrease by the price of crude oil, with crude for February delivery sliding $0.66 to $36.10 a barrel.

Railroad and airline stocks are also seeing some weakness on the day, while strength has emerged among tobacco, commercial real estate, and trucking stocks.

Among individual stocks, shares of Smith & Wesson (SWHC) are moving sharply higher in early trading after the gun maker raised its third quarter and full year guidance.

Solar equipment maker First Solar (FSLR) is also seeing early strength after Goldman Sachs upgraded its rating on the company's stock to Buy from Neutral.

On the other hand, shares of Nordstrom (JWN) have moved to the downside after Citi lowered its rating on the retailer to Neutral from Buy.

In overseas trading, most stock markets across the Asia-Pacific region saw further downside during trading on Tuesday. Japan's Nikkei 225 Index fell by 0.4 percent, while Hong Kong's Hang Seng Index slid by 0.7 percent.

Meanwhile, the major European markets are regaining some ground. While the U.K.'s FTSE 100 Index has risen by 0.5 percent, the French CAC 40 Index and the German DAX Index are both up by 0.2 percent.

In the bond market, treasuries are turning in a lackluster performance amid the choppy trading on Wall Street. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 2.246 percent.