RTTNews - While selling pressure has remained somewhat subdued, stocks are seeing modest weakness in early trading on Wednesday. The major averages are all in negative territory after ending the previous session modestly higher.
Resource stocks are turning in some of the market's worst performances, with gold stocks posting notable losses despite an increase by the price of the precious metal. On the other hand, some strength has emerged in the biotech, networking, and real estate sectors.
Traders are digesting a report from the Commerce Department showing a much bigger than expected increase in durable goods orders in the month of July, with the growth largely due to a substantial rebound in orders for transportation equipment
The report showed that new orders for durable goods jumped 4.9 percent in July following a revised 1.3 percent decrease in June. Economists had expected orders to increase by 3.2 percent compared to the 2.2 percent decrease that had been reported for the previous month.
Excluding an 18.4 percent increase in orders for transportation equipment, durable goods orders increased by a much more modest 0.8 percent in July compared to a 2.5 percent increase in June. The increase came in below economist estimates of 1.0 percent growth.
At the top of the hour, traders will also be presented with data on new home sales in the month of July. New home sales are expected edge up to an annual rate of 390,000 from the 384,000 reported for the previous month.
In the past few minutes, the major averages have moved well off their lows for the young session, although they remain stuck in the red. The Dow is currently down 19.58 at 9,519.71, the Nasdaq is down 1.19 at 2,023.04 and the S&P 500 is down 2.82 at 1,025.18.
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