Major Averages Close Lower For Third Consecutive Session

(RTTNews) - Stocks came under pressure over the course of the trading day on Thursday after initially showing a lack of direction. With the notable pullback on the day, the major averages closed lower for the third consecutive session.

Gold stocks moved sharply lower over the course of the trading day on Thursday, dragging the NYSE Arca Gold Bugs Index down by 4.3 percent. With the steep drop on the day, the index fell to its lowest closing level in well over twelve years.

The sell-off by gold stocks came even though the price of the precious metal moved modestly higher, with gold for August delivery climbing $2.60 to $1,094.10 an ounce.

Substantial weakness was also visible among railroad stocks, as reflected by the 4.3 percent loss posted by the Dow Jones Railroads Index. The drop pulled the index down to its lowest closing level in well over a year.

Union Pacific (UNP) helped to lead the railroad sector lower, falling by 5.7 percent after reporting weaker than expected second quarter revenues.

Telecom stocks also saw significant weakness, resulting in a 2.2 percent drop by the NYSE Arca Telecom Index. Windstream Holdings (WIN) and Sprint (S) posted steep losses.

Trucking, utilities, and commercial real estate stocks also came under pressure on the day, contributing to the pullback by the broader markets.

On the other hand, oil service stocks moved sharply higher as the day progressed, driving the Philadelphia Oil Service Index up by 2.8 percent. The strength in the sector came despite a continued decrease by the price of crude oil.

Networking, semiconductor, and computer hardware stocks also saw some strength, reflecting a rebound by the tech sector following yesterday's sell-off.

The major averages climbed off their worst levels going into the close but remained firmly negative. The Dow fell 119.09 points or 0.7 percent to 17,731.95, the Nasdaq slid 25.36 points or 0.5 percent to 5,146.41 and the S&P 500 dropped 12.00 points or 0.6 percent to 2,102.15.