RTTNews - Stocks moved lower at the start of trading on Tuesday, with the major averages moving back to the downside after ending the previous session modestly higher. The initial weakness came as traders cashed in on some of the market's recent gains.
Oil service stocks are seeing considerable weakness in early trading amid a notable decrease by the price of crude oil. Early weakness has also emerged among chemical, utilities, and railroad stocks, although selling pressure has remained somewhat subdued.
On the economic front, Standard and Poor's released a report showing that U.S. home prices continued to decline at a significant annual rate in the month of May, although the pace of decline in prices slowed for the fourth consecutive month.
The report showed that the S&P/Case-Shiller 20-City Composite Home Price Index fell at an annual rate of 17.1 percent in May compared to the 18.1 percent decrease reported for April. Economists had expected the report to show that prices fell 17.9 percent year-over-year.
Traders will also keep an eye on the Conference Board's report on consumer confidence in July, with the consumer confidence index expected to edge down to 49.0 from 49.3 in June. The report will be released at 10:00 a.m. ET.
In earnings news, entertainment giant Viacom (VIA) reported adjusted second quarter earnings of $0.49 per share, compared to $0.64 in the previous year. While earnings came in-line with Wall Street analysts, revenues came in at $3.3 billion, well short of expectations of $3.5 billion.
Meanwhile, Office Depot (ODP) revealed an adjusted second quarter loss of $0.22 per share, compared to earnings of $10 million or $0.04 per share a year ago. The loss was wider than analyst estimates of a loss of $0.12 per share. Revenues dropped by 22 percent to $2.82 billion.
Further, Amgen (AMGN) posted adjusted second quarter earnings that firmly beat expectations although revenues fell short of estimates. Manitowoc's (MTW) adjusted second quarter earnings also surpassed analysts' forecasts, while revenues disappointed.
In the past few minutes, the major averages have moved well off their lows for the young session, although they currently remain stuck in the red. The Dow is currently down 20.48 at 9,088.03, the Nasdaq is down 5.68 at 1,962.21 and the S&P 500 is down 4.09 at 978.09.
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