Stocks Showing A Lack Of Direction In Early Trading - U.S. Commentary

(RTTNews) - After ending the previous session modestly higher, stocks are turning in a lackluster performance in early trading on Tuesday. The major averages are lingering near the unchanged line after the Dow and the S&P 500 ended Monday's trading at new record closing highs.

The major averages have moved to the downside in the past few minutes and are currently posting modest losses. The Dow is down 18.85 points or 0.1 percent at 15,465.41, the Nasdaq is down 2.42 points or 0.1 percent at 3,605.08 and the S&P 500 is down 2.98 points or 0.2 percent at 1,679.52.

Uncertainty about the near-term outlook for the markets is keeping traders on the sidelines following the upward trend seen over the past few weeks.

Traders also seem reluctant to make any significant moves ahead of Federal Reserve Chairman Ben Bernanke's testimony before the House Financial Services Committee on Wednesday.

The markets have largely shrugged off reports showing that consumer prices and industrial production both rose by a little more than expected in June.

The Labor Department said its consumer price index rose by 0.5 percent in June after inching up by 0.1 percent in May. Economists had been expecting prices to increase by 0.4 percent.

Excluding food and energy prices, the core consumer price index inched up by 0.2 percent in June, matching the increase seen in the previous month as well as economist estimates.

Separately, the Federal Reserve said industrial production rose by 0.3 percent in June after coming in unchanged in May. Economists had been expecting production to edge up by 0.2 percent.

Most of the major sectors are showing only modest moves in early trading, although some strength is visible among gold stocks. The strength in the gold sector comes amid an increase by the price of the precious metal.

Healthcare provider stocks are also seeing early strength, while some weakness has emerged among health insurance stocks.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index rose by 0.6 percent, while South Korea's KOSPI Index fell by 0.5 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the U.K.'s FTSE 100 Index has edged down by 0.2, the German DAX Index and the French CAC 40 Index are down by 0.3 percent and 0.5 percent, respectively.

In the bond market, treasuries are seeing modest strength, extending a recent upward trend. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, has dipped by 1.3 basis points to 2.543 percent.