Stocks Moving Mostly Lower In Early Trading - U.S. Commentary

(RTTNews) - Stocks have moved mostly lower in early trading on Tuesday, giving back ground after trending higher for much of the past two weeks. The major averages have all slid into negative territory, although selling pressure remains somewhat subdued.

In recent trading, the major averages have bounced off their lows for the young session, but they remain in the red. The Dow is down 48.30 points or 0.3 percent at 17,989.93, the Nasdaq is down 15.97 points or 0.3 percent at 4,790.94 and the S&P 500 is down 6.25 points or 0.3 percent at 2,084.32.

The early pullback on Wall Street is partly due to weakness in the overseas markets, with stocks across both the Asia-Pacific region and Europe moving sharply lower on the day.

Concerns about the political situation in Greece are contributing to the weakness in Europe after the country's parliament failed to elect a president.

Peter Boockvar, managing director at the Lindsey Group, said the biggest market risk is not what happens politically or economically in Greece but if the developments there impact what the European Central Bank wants to do going forward.

"The possibility of the Syriza party winning the January 25th election, 3 days after the ECB's next meeting, won't likely alter Draghi's plans for sovereign QE but it could complicate it," Boockvar said.

Worries about the impact that the recent drop in crude oil prices will have on the oil and gas industry is also weighing on the markets.

Reflecting the impact on the industry, Civeo (CVEO) said it has reduced headcount in its Canadian and U.S. operations by 30 percent and 45 percent, respectively, from levels at the beginning of 2014.

Civeo, which provides temporary and long-term housing for oil workers, also slashed its spending and suspended its dividend. Shares of Civeo have plunged by 47.4 percent on the day.

Oil service stocks are turning in some of the market's worst performances, resulting in a 1.2 percent drop by the Philadelphia Oil Service Index.

Natural gas, oil producer, and utilities stocks are also seeing early weakness, while gold stocks have moved sharply higher along with the price of the precious metal.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's Nikkei 225 Index plunged by 1.6 percent, while Hong Kong's Hang Seng Index slumped by 1.1 percent.

The major European markets have also come under pressure on the day. While the U.K.'s FTSE 100 Index has tumbled by 1.4 percent, the German DAX Index and the French CAC 40 Index are both down by 1.2 percent.

In the bond market, treasuries are moving notably higher amid worries about the situation in Greece. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.8 basis points at 2.169 percent.