Stocks Fluctuate Before Ending The Session Mixed - U.S. Commentary

(RTTNews) - Following the sell-off seen in the previous session, stocks fluctuated over the course of the trading day on Tuesday. The major averages spent the day bouncing back and forth across the unchanged line before eventually ending the day mixed.

The tech-heavy Nasdaq slid 26.65 points or 0.6 percent to a one-month closing low of 4,517.32, while the Dow rose 47.24 points or 0.3 percent to 16,049.13 and the S&P 500 inched up 2.32 points or 0.1 percent to 1,884.09.

Bargain hunting contributed to early strength on Wall Street, with traders picking up stocks at reduced levels on the heels of the steep losses posted on Monday.

The sharp decline on Monday dragged the major averages down to their lowest levels in a month amid widespread uncertainty about interest rates and the global economy.

Traders also reacted positively to a report from the Conference Board showing an unexpected improvement in U.S. consumer confidence in the month of September.

The Conference Board said its consumer confidence index climbed to 103.0 in September from 101.3 in August. Economists had expected the index to pull back to 96.0.

Buying interest remained relatively subdued, however, as traders expressed continued uncertainty about the outlook for interest rates and the global economy.

Stocks subsequently saw some volatility as the day progressed, as traders looked ahead to Friday's highly anticipated monthly jobs report.

Among individual stocks, shares of Republic Airways (RJET) moved sharply higher on the day amid news the airline reached a tentative three-year agreement with its pilots union.

Online media giant Yahoo (YHOO) also moved higher on news the company is proceeding with plans to spin off its stake in Alibaba (BABA).

On the other hand, shares of OvaScience (OVAS) came under pressure after the fertility company said it does not expect to meet the 2015 goal of 1,000 Augment treatment cycles.

Sector News

Housing stocks came under significant selling pressure over the course of the session, dragging the Philadelphia Housing Sector Index down by 1.7 percent. With the drop, the index fell to an eight-month closing low.

The weakness among housing stocks came following the release of a report from Standard & Poor's showing an unexpected drop in home prices in major metropolitan areas in the month of July.

Considerable weakness also emerged among biotechnology stocks, which pulled back sharply after seeing early strength. The NYSE Arca Biotechnology Index tumbled by 1.4 percent to its lowest closing level in over nine months.

Telecom and internet stocks also moved to the downside, while strength remained visible among commercial real estate and railroad stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region saw substantial weakness during trading on Tuesday. Japan's Nikkei 225 Index plunged by 4.1 percent, while Hong Kong's Hang Seng Index tumbled by 3 percent.

The major European markets also moved lower on the day. While the U.K.'s FTSE 100 Index slid by 0.8 percent, the German DAX Index and the French CAC 40 Index dropped by 0.4 percent and 0.3 percent, respectively.

In the bond market, treasuries moved to the upside, extending the rally seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.1 basis points to 2.054 percent.

Looking Ahead

Economic data may attract attention on Wednesday, with traders likely to keep an eye on reports on private sector employment and Chicago-area business activity.

Additionally, Federal Reserve Chair Janet Yellen is scheduled to deliver opening remarks to a St. Louis Fed community banking conference later in the session.