Major Averages Slide More Firmly Into Negative Territory

(RTTNews) - After initially showing a lack of direction, stocks have moved sharply lower over the course of the trading day on Thursday. The losses on the day are extending a recent downward trend by the markets, with the major averages falling to their lowest levels in over a month.

Energy stocks have helped to lead the markets lower on the day amid a continued decrease by the price of crude oil. Crude for November is currently sliding $1.15 to $89.58 a barrel, dropping below $90 a barrel for the first time in seventeen months.

Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index has plummeted by 2.8 percent and the NYSE Arca Oil & Gas Index has tumbled by 2 percent.

Considerable weakness has also emerged among semiconductor stocks, as reflected by the 1.8 percent loss being posted by the Philadelphia Semiconductor Index. Cree (CREE) is leading the sector lower after warning of weaker than expected first quarter results.

Steel stocks have also shown a substantial move to the downside on the day, dragging the NYSE Arca Steel Index down by 1.6 percent. The drop extends a recent downtrend by the index, which has fallen to its lowest intraday level in over a year.

Computer hardware, biotechnology, and chemical stocks are also seeing significant weakness, moving lower along with most of the other major sectors.

The major averages have recently climbed off their lows for the session but remain firmly in the red. The Dow is down 85.45 points or 0.5 percent at 16,719.26, the Nasdaq is down 37.72 points or 0.9 percent at 4,384.36 and the S&P 500 is down 14.01 points or 0.7 percent at 1,932.15.