WASHINGTON (dpa-AFX) - Stocks are seeing modest weakness during trading on Tuesday, giving back ground after moving notably higher over the past several sessions. Selling pressure has remained relatively subdued, however, limiting the downside for the major averages.
Currently, the major averages are just off their lows of the session. The Dow is down 137.61 points or 0.3 percent at 44,155.52, the Nasdaq is down 11.81 points or 0.1 percent at 19,286.96 and the S&P 500 is down 11.77 points or 0.2 percent at 5,989.58.
The modest weakness on Wall Street may partly reflect profit taking, as some traders look to cash in on the recent strength in the markets.
The major averages have rallied to new record highs in recent days following former President Donald Trump's decisive victory in last week's presidential election.
Trump's return to the White House is expected to be positive for corporations and the U.S. economy, although there are some concerns about the effect planned tariff increases will have on inflation.
Nonetheless, traders seem reluctant to make more significant moves ahead of the release of closely watched economic data in the coming days.
A highly anticipated report on consumer price inflation is due to be released on Wednesday, while reports on producer price inflation, retail sales and industrial production are likely to attract attention later in the week.
'Inflation-related data releases take on heightened importance as markets try to ascertain whether the Fed can, absent weakness in the labor market, deliver the rate cut cycle it had expected just a few months ago--- and whether the already extended market can withstand the possibility that the Fed could remain higher for longer,' said Quincy Krosby, Chief Global Strategist for LPL Financial.
Sector News
Steel stocks are turning in some of the market's worst performances on the day, resulting in a 2.7 percent nosedive by the NYSE Arca Steel Index.
Substantial weakness is also visible among airline stocks, as reflected by the 2.4 percent plunge by the NYSE Arca Airline Index. The index is pulling back off its best closing level in over a year.
Housing stocks have also shown a significant move to the downside, dragging the Philadelphia Housing Sector Index down by 2.0 percent.
Telecom, gold and computer hardware stocks are also seeing notable weakness, while modest strength has emerged among software stocks.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's Nikkei 225 Index fell by 0.4 percent, while China's Shanghai Composite Index slumped by 1.4 percent and Hong Kong's Hang Seng Index dove by 2.8 percent.
The major European markets have also moved to the downside on the day. While the French CAC 40 Index is down by 2.3 percent, the German DAX Index is down by 1.8 percent and the U.K.'s FTSE 100 Index is down by 1.1 percent.
In the bond market, treasuries are seeing considerable weakness following the Veterans Day holiday on Monday. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 7.6 basis points at 4.384 percent.
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