Stocks Regain Ground After Seeing Early Weakness - U.S. Commentary

(RTTNews) - After coming under pressure in early trading, stocks have staged a notable recovery attempt over the course of the trading session on Tuesday. The major averages have climbed well off their worst levels of the day, with the Dow reaching positive territory.

Currently, the major averages are turning in a mixed performance. While the Dow is up 13.06 points or 0.1 percent at 17,805.74, the Nasdaq is down 11.33 points or 0.2 percent at 5,091.15 and the S&P 500 is down 1.33 points or 0.1 percent at 2,085.26.

The early weakness on Wall Street partly reflected geopolitical concerns on the heels of news Turkish fighter jets shot down a Russian warplane near the Syrian border.

The Russian-made SU-24 was reportedly shot down after receiving repeated warnings about entering Turkish air space, although Russia claims the jet remained in Syria for the duration of its flight.

The incident added to concerns about escalating tensions in the region and offset optimism about a potential alliance between Russia and the West in the fight against ISIS.

Selling pressure waned not long after the open, however, with the subsequent rebound led by resource stocks amid an increase in commodities prices.

On the U.S. economic front, the Commerce Department released a report before the start of trading showing that economic activity increased by more than previously estimated in the third quarter.

The report said real gross domestic product climbed by 2.1 percent in the third quarter compared to the previously reported 1.5 percent increase. The upward revision matched economist estimates.

Meanwhile, the Conference Board released a separate report unexpectedly showing a substantial deterioration in consumer confidence in the month of November.

The Conference Board said its consumer confidence index tumbled to 90.4 in November from an upwardly revised 99.1 in October.

The steep drop came as a surprise to economists, who had expected the index to climb to 99.6 from the 97.6 originally reported for the previous month.

Sector News

Gold stocks have shown a substantial move to the upside on the day, driving the NYSE Arca Gold Bugs Index up by 4.1 percent. The index is rebounding after closing lower in the two previous sessions.

The strength among gold stocks comes amid an increase by the price of the precious metal, with gold for December delivery climbing $8.60 to $1,075.40 an ounce.

Considerable strength is also visible among energy stocks, which are moving higher along with the price of crude oil. Crude for January delivery is jumping $1.30 to $43.05 a barrel.

Reflecting the strength in the energy sector, the Philadelphia Oil Service Index is up by 3 percent, while the NYSE Arca Natural Gas Index and the NYSE Arca Oil & Gas Index are up by 2.5 percent and 2.4 percent, respectively.

On the other hand, significant weakness remains visible among airline stocks, as reflected by the 2.8 percent loss being posted by the NYSE Arca Airline Index.

The weakness among airline stocks comes after the State Department issued a worldwide travel alert for Americans amid concerns about terrorist attacks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Tuesday. Japan's Nikkei 225 Index rose by 0.2 percent, while Hong Kong's Hang Seng Index fell by 0.4 percent.

Meanwhile, the major European markets all moved to the downside on the day. While the U.K.'s FTSE 100 Index dropped by 0.5 percent, the German DAX Index and the French CAC 40 Index both tumbled by 1.4 percent.

In the bond market, treasuries are seeing further upside after turning higher over the course of the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.4 basis points at 2.234 percent.