Major Averages Posting Modest Losses In Early Trading

(RTTNews) - Stocks are seeing modest weakness in early trading on Tuesday, partly offsetting the gains posted in the previous session. The major averages are all in negative territory, although selling pressure has remained relatively subdued.

The early weakness on Wall Street partly reflects a negative reaction to earnings news from Wal-Mart (WMT), with the retail giant falling by 3.1 percent.

The drop by shares of Wal-Mart comes after the company reported weaker than expected second quarter earnings and lowered its full-year guidance.

Worries about the situation in China are also weighing on the markets following a sell-off by stocks in the communist nation.

Electronic storage stocks are seeing significant weakness in early trading, resulting in a 1.5 percent drop by the NYSE Arca Disk Drive Index. The index is currently on pace to end the session at a two-year closing low.

Semiconductor, airline, and metal stocks have also shown notable moves to the downside, while considerable strength has emerged among housing stocks.

Currently, the major averages are posting slim losses on the day. The Dow is down 9.45 points or 0.1 percent at 17,535.73, the Nasdaq is down 17.00 points or 0.3 percent at 5,074.70 and the S&P 500 is down 1.89 points or 0.1 percent at 2,100.55.