Major Averages Posting Modest Losses In Early Trading

(RTTNews) - Stocks are turning in a lackluster performance in early trading on Wednesday after turning lower over the course of the previous session. The major averages are showing only modest moves, although the Nasdaq is pulling back further off its recent highs.

The choppy trading on Wall Street is partly due to uncertainty about the near-term outlook for the markets following the volatility seen over the past few weeks.

Traders also remain focused on the outlook for interest rates following the release of a disappointing report on durable goods orders.

The Commerce Department report showed that durable goods orders fell by 1.4 percent in February compared to expectations for a 0.7 percent increase.

While the report also showed a notable drop by a key indicator of capital spending, Peter Boockvar, managing director at the Lindsey Group, noted that traders are focused on what the report means for Fed policy rather than whether Fed policy has been effective in helping the economy.

Despite the choppy trading, biotechnology stocks have shown a significant move to the downside, dragging the NYSE Arca Biotechnology Index down by 1.7 percent.

With the drop on the day, the biotechnology index is pulling back further off the record intraday high that it set last Friday.

Semiconductor and software stocks are also seeing early weakness, while energy stocks are moving higher along with the price of crude oil.

Currently, the major averages are posting modest losses on the day. The Dow is down 41.01 points or 0.2 percent at 17,970.13, the Nasdaq is down 19.82 points or 0.4 percent at 4,974.91 and the S&P 500 is down 0.46 points or less than a tenth of a percent at 2,091.04.