Stocks Close Mostly Higher Following Recent Sell-Off - U.S. Commentary

(RTTNews) - After seeing substantial weakness over the past few sessions, stocks moved mostly higher during trading on Tuesday. Buying interest remained relatively subdued, however, limiting the upside for the markets.

While the Dow ended the day down 5.88 points or less than a tenth of a percent at 16,315.19, the broader Nasdaq and S&P 500 both closed in positive territory. The Nasdaq climbed 13.52 points or 0.3 percent to 4,227.17 and the S&P 500 edged up 2.96 point or 0.2 percent to 1,877.70.

Bargain hunting contributed to some strength on Wall Street, with traders picking up stocks at reduced levels following the worst three-day slide since 2011.

The Nasdaq and the S&P 500 regained some ground after ending Monday's trading at their worst closing levels in over four months, while the Dow dipped to a new six-month closing low.

Traders seemed somewhat reluctant to get back into the markets amid continued concerns about the outlook for global economic growth.

Adding to the global growth worries, Germany's economy ministry cut its growth forecasts for this year and next, citing weaker demand in export markets due to rising geopolitical tensions and sluggish global growth.

The growth forecast for this year was slashed to 1.2 percent from 1.8 percent in April, while the outlook for 2015 was reduced to 1.3 percent from 2 percent.

Nonetheless, some buying interest was generated in reaction to earnings news from some big-name companies, with shares of Citigroup (C) moving notably higher after the financial giant reported third quarter results that exceeded analyst estimates.

Domino's Pizza (DPZ) and Wolverine World Wide (WWW) also posted strong gains after reporting better than expected third quarter earnings.

Not all companies reacted positively to their quarterly results, however, with Johnson & Johnson (JNJ), JP Morgan (JPM) and Wells Fargo (WFC) all moving to the downside.

Sector News

Despite the relatively lackluster close by the broader markets, airline stocks saw substantial strength on the day following recent weakness. The NYSE Arca Airline Index surged up by 3.7 percent, bouncing off a nearly eight-month intraday low.

American Airlines (AAL) and JetBlue (JBLU) turned in two of the airline sector's best performances, soaring by 10.3 percent and 8.7 percent, respectively.

Trucking stocks also saw considerable strength, resulting in a 3.1 percent jump by the Dow Jones Trucking Index. J.B. Hunt (JBHT) posted a standout gain after reporting better than expected third quarter earnings.

Significant strength was also visible among semiconductor stocks, as reflected by the 1.9 percent gain posted by the Philadelphia Semiconductor Index. The gain by the index came after it ended the previous session at its lowest closing level in eight months.

Railroad, steel, and commercial real estate stocks also turned in strong performances on the day, while energy stocks saw further downside along with the price of crude oil.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 plunged by 2.4 percent, while Australia's All Ordinaries Index jumped by 1 percent.

Meanwhile, the major European markets all saw modest strength on the day. While the U.K.'s FTSE 100 Index rose by 0.4 percent, the French CAC 40 Index and the German DAX Index both edged up by 0.2 percent.

In the bond market, treasuries moved notably higher, extending their recent upward trend. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 8 basis points to 2.206 percent, its lowest closing level in well over a year.

Looking Ahead

Following several quiet days on the U.S. economic front, trading on Wednesday may be impacted by the release of closely watched reports on retail sales and wholesale price inflation.

Reaction to quarterly results from Intel (INTC) could also drive trading, as the semiconductor giant is releasing its third quarter results after the close of today's trading.