Stocks are seeing continued weakness in mid-afternoon trading on Tuesday, with the major averages stuck firmly in negative territory. With traders continuing to cash in on recent gains, stocks are pulling back further off their recent highs.
In an interview with RTT News, Doug Nardi, portfolio manager at Legg Mason Investment Counsel attributed today's losses to anxiety over the upcoming earnings season, which is set to kick off after the closing bell tonight.
Nardi said the market is stuck in no man's land right now, between a big move up and the next big hurdle for the market, and predicts it will trade sideways in this environment until earnings outlooks are released.
However, Nardi added, There's absolutely a possibility that there's an upside to the earnings season, suggesting that investors with cash on the sidelines should buy on down days.
Dow component Alcoa (AA) is scheduled to release its first quarter results after the close of trading, with the release of results from the aluminum producer seen as the unofficial start of the earnings reporting season.
The major averages have been more or less rangebound in recent trading, stuck near their worst levels of the day. The Dow is currently down 187.17 at 7,788.68, the Nasdaq is down 44.18 at 1,562.53 and the S&P 500 is down 19.36 at 816.12.
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