Stocks Close Modestly Lower Following Volatile Trading Session - U.S. Commentary

(RTTNews) - Stocks fluctuated throughout the trading session on Tuesday, unable to sustain any significant moves. The choppy trading on the day came on the heels of the sell-off that was seen over the course of the two previous sessions.

The major averages eventually closed in the red, with the Nasdaq and the S&P 500 once again falling to their lowest closing levels in over a year. The Dow edged down 12.67 points or 0.1 percent to 16,014.38, the Nasdaq fell 14.99 points or 0.4 percent to 4,286.76 and the S&P 500 dipped 1.23 points or 0.1 percent to 1,852.21.

The lackluster performance on Wall Street came as traders kept a close eye on the price of crude oil, which saw considerable volatility on the day.

Crude for March delivery ended the session down $1.75 at $27.94 a barrel after reaching a high of $30.61 a barrel earlier in the session.

The price of crude oil extended the decrease seen on Monday, when crude tumbled $1.20 to $29.69 a barrel amid continued concerns about a global supply glut.

Traders may also have been looking ahead to remarks by Federal Reserve Chair Janet Yellen, who is scheduled to testify before the House Financial Services Committee on Wednesday.

The markets are likely to pay close attention to Yellen's remarks in an effort to gain some insight into the outlook for interest rates.

The Energy Information Administration is also due to release its weekly oil inventories report on Wednesday, potentially driving the price of crude oil.

Among individual stocks, shares of Viacom (VIAB) fell sharply on the day after the media giant reported weaker than expected first quarter revenues on weak ad sales.

Plains All American Pipeline (PAA) also posted a steep loss after reporting fourth quarter results that came in below analyst estimates.

On the other hand, shares of Wyndham Worldwide (WYN) moved notably higher after the hotel operator reported better than expected fourth quarter results and raised its dividend.

Sector News

Despite the lackluster close by the broader markets, oil service stocks saw substantial weakness on the day. The Philadelphia Oil Service Index plummeted by 5.9 percent amid the decrease by the price of crude oil.

Bristow Group (BRS) helped to lead the oil service sector lower, tumbling by 20.2 percent after cutting its quarterly dividend.

Reflecting weakness in the broader energy sectors, the NYSE Arca Natural Gas Index also plunged by 4 percent, while the NYSE Arca Oil & Gas Index slumped by 2.4 percent.

Significant weakness also emerged among gold stocks, as reflected by the 4.4 percent loss posted by the NYSE Arca Gold Bugs Index. The drop by the index came after it ended the previous session at a seven-month closing high.

The weakness among gold stocks came as the price of the precious metal pulled back in electronic trading after ending the session up $0.70 at $1,198.60 an ounce.

Steel, commercial real estate, and computer hardware stocks also saw considerable weakness on the day, while notable strength was visible among airline, railroad, and chemical stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Tuesday, although several markets remained closed for holidays. Japan's Nikkei 225 Index plummeted by 5.4 percent, while Australia's All Ordinaries Index slumped by 2.8 percent.

The major European markets also showed notable moves to the downside on the day. While the French CAC 40 Index tumbled by 1.7 percent, the German DAX Index and the U.K.'s FTSE 100 Index dropped by 1.1 percent and 1 percent, respectively.

In the bond market, treasuries showed a lack of direction throughout the session before closing roughly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 1.729 percent.

Looking Ahead

Yellen's testimony is likely to be in the spotlight on Wednesday, although the EIA report may also attract attention amid the recent focus on crude oil prices.

On the earnings front, entertainment giant Walt Disney (DIS) is among the companies releasing their quarterly results after the close of today's trading.