RTTNews - After showing a notable decline earlier in the session, stocks are seeing continued weakness in late morning trading on Wednesday. The major averages are stuck firmly in negative territory, partly offsetting their recent gains.
The weakness in the markets comes as disappointing economic data has inspired some profit taking, with a report from the Institute for Supply Management showing an unexpected acceleration in the pace of contraction in the service sector in July.
Oil service stocks are turning in some of the market's worst performances amid a modest decrease by the price of oil. Baker Hughes (BHI) is helping to lead the sector lower after reporting second quarter earnings that fell by more than analysts had been expecting.
Significant weakness has also emerged in a variety of other sectors, with health insurance, railroad, and gold stocks posting notable losses. The weakness among gold stocks comes amid a decrease by the price of the precious metal.
On the other hand, some banking stocks are bucking the downtrend by the broader markets, resulting in a 1.6 percent gain by the S&P Banks Index. Bank of America (BAC) is turning in the Dow's best performance, advancing 4.5 percent.
In recent trading, the Dow and the S&P 500 have moved well off their lows, while the Nasdaq is linger near its worst levels of the day. The Dow is currently down 77.99 at 9,242.20, the Nasdaq is down 23.22 at 1,988.09 and the S&P 500 is down 7.26 at 998.39.
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