Major Averages Pull Back Firmly Into Negative Territory

(RTTNews) - After initially showing a lack of direction, stocks have come under pressure over the course of the trading day on Tuesday. Renewed concerns about the outlook for the Federal Reserve's stimulus program have inspired traders to cash in on recent strength in the markets.

Oil service stocks have shown a notable move to the downside on the day, dragging the Philadelphia Oil Service Index down by 1.3 percent. The index is pulling back further off the nearly two-year closing high that it set last Monday.

The pullback by oil service stocks comes amid a modest decrease by the price of crude oil, with crude for August delivery sliding $0.21 to $106.11 a barrel.

Significant weakness has also emerged among brokerage and banking stocks, with the NYSE Arca Broker/Dealer Index and the KBW Bank Index down by 1.3 percent and 1.1 percent. Traders are cashing in on recent strength in the financial sectors.

Biotechnology, chemical, and natural gas stocks have also come under pressure on the day, while considerable strength remains visible among gold stocks. The NYSE Arca Gold Bugs Index has surged up by 3.7 percent even though the price of gold is seeing only modest strength.

The major averages have recently edged up off their lows for the session but remain in the red. The Dow is down 43.21 points or 0.3 percent at 15,441.05, the Nasdaq is down 15.17 points or 0.4 percent at 3,592.32 and the S&P 500 is down 7.78 points or 0.5 percent at 1,674.72.