Stocks Seeing Moderate Weakness Amid Choppy Trading - U.S. Commentary

(RTTNews) - Stocks have seen some volatility over the course of the trading session on Tuesday but have largely maintained a negative bias. The lack of direction on the day comes on the heels of the steep losses posted in the two previous sessions.

Currently, the major averages are in negative territory but well off their worst levels of the day. The Dow is down 58.38 points or 0.4 percent at 15,968.67, the Nasdaq is down 12.64 points or 0.3 percent at 4,271.11 and the S&P 500 is down 6.54 points or 0.4 percent at 1,846.90.

The choppy trading seen on Wall Street comes as traders are keeping a close eye on the price of crude oil, which has been bouncing back and forth across the unchanged line.

Crude for March delivery is currently down $0.63 at $29.06 a barrel after reaching a high of $30.61 a barrel earlier in the session.

The price of crude oil tumbled $1.20 to $29.69 a barrel on Monday amid continued concerns about a global supply glut.

Traders may also be 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) have fallen sharply on the day after the media giant reported weaker than expected first quarter revenues on weak ad sales.

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

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

Sector News

Oil service stocks have moved sharply lower over the course of the trading day, dragging the Philadelphia Oil Service Index down by 6.4 percent. The index is moving lower for the third straight session.

Bristow Group (BRS) has helped to lead the oil service sector lower, tumbling by 22.3 percent after cutting its quarterly dividend.

Reflecting weakness in the broader energy sectors, the NYSE Arca Natural Gas Index and the NYSE Arca Oil & Gas Index are also down by 3.7 percent and 2.7 percent, respectively.

Steel stocks are also seeing significant weakness on the day, resulting in a 3.7 percent drop by the NYSE Arca Steel Index. The index is pulling back further off the one-month closing high set last Thursday.

Commercial real estate, electronic storage, and telecom stocks are also seeing notable weakness, while strength is visible among transportation 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 are turning in a lackluster performance after rising sharply on Monday. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 1.74 percent.