Major Averages Remain Stuck Firmly In The Red In Mid-Day Trading

(RTTNews) - After falling sharply at the start of trading on Wednesday, stocks have regained some ground over the course of the session but remain firmly negative. Earlier in the day, the major averages hit their lowest intraday levels in about three months.

Energy stocks continue to see substantial weakness in mid-day trading, moving lower along with the price of crude oil. Crude for February delivery is tumbling $1.61 to $34.36 a barrel after a report showed a sharp jump in U.S. gasoline inventories.

Reflecting the weakness in the energy sector, the NYSE Arca Natural Gas Index has plunged by 5.1 percent, while the Philadelphia Oil Service Index is down by 4 percent and the NYSE Arca Oil & Gas Index is down by 3.6 percent.

Considerable weakness also remains visible among steel stocks, which have come under pressure amid concerns about the outlook for global demand. The NYSE Arca Steel Index is down by 3.3 percent after hitting a record intraday low.

Most of the other major sectors have also moved to the downside, with railroad, chemical, and semiconductor stocks seeing notable weakness.

On the other hand, gold stocks are among the few groups bucking the downtrend, resulting in a 2.6 percent jump by the NYSE Arca Gold Bugs Index. The strength in the sector comes as gold for February delivery is climbing $11.30 to $1,089.70 an ounce.

The major averages have moved roughly sideways in recent trading, stuck in the red. The Dow is down 199.49 points or 1.2 percent at 16,959.17, the Nasdaq is down 37.18 points or 0.8 percent at 4,854.25 and the S&P 500 is down 20.46 points or 1 percent at 1,996.25.