Stocks Still Showing Low Performance for the Second Straight Day

Trader William McInerney, left, and specialist Jay Woods work on the floor of the New York Stock Exchange, Wednesday, March 30, 2016. Stocks are opening slightly higher on Wall Street, building on gains from the day before. (AP Photo/Richard Drew)

The performance of US Stocks was really low during Tuesday trading before ending the session at a modestly lower point. The major averages, with the drop of that day, added to losses that were posted in the last session.

The major indexes climbed out of their worst levels, but still closed in red. The Dow Jones Industrial Average was down 0.1% or 29.58 points to 20924.76. The S&P 500 fell 0.3% or 6.92 points to 2368.39. NASDAQ Composite also fell 0.3% or 15.25 points to 5833.93.

This close was partly because of profit taking as traders were cashing in on the strength of the recent market.

The concerns for interest rate hike also weighed in on lowering the market as expectations rise for the hike before next week’s meeting of the Federal Reserve Officials.

FedWatch of CME Group indicates a probability of 84.1% of a quarter point rate hike by CB.

The trading activity was also subdued because of the traders looking ahead to the monthly job reports that are closely watched by the Labor Department that released this Friday.

The Commerce Department also showed that the trade deficit of USA has widened in line with the estimates of the economists in January.

The report by the Commerce Department said that the trade deficit increased from $44.3 Billion in December to $48.5 Billion in January, which matched the expectations.

This report in January indicated the widest trade deficit since March 2012 when it reached $50.2 Billion.

Stocks of Airlines also took a downfall on this day, dragging down NYSE Arca Airline Index by 1.7%.

Ryanair, Hawaiian Holdings and Allegiant Travel were some of the worst performances of the airline sector that day.

Steel stock also showed a loss of 1.7% posted by NYSE Arca Steel Index.

Biotech stocks also tumbled a little when President Donald Trump pledged introducing new system to increase drug industry competition and bring the prices down.

Railroad stocks, oil service, and telecom also showed downfalls on the day as they moved lower along with most of the major sectors in US Stock.

The Asian region showed mixed performance with Nikkei 225 Index of Japan down by 0.2% and Hang Seng Index of Hong Kong up by 0.4%.

The European markets also had mixed updates with DAX Index of Germany up by 0.1%, FTSE 100 Index of UK down by 0.2% and CAC 40 Index of France down by 0.4%.

Coming to the bond market, treasuries were lower after ending the last session flat.

Some attention maybe attracted by private sector employment and productivity on Wednesday, but the trading activity will most likely be subdued till Friday.

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