WASHINGTON (dpa-AFX) - Stocks continue to turn in a lackluster performance in mid-day trading on Tuesday following the choppy trading seen earlier in the session. The major averages have spent the day bouncing back and forth across the unchanged line.
Currently, the major averages continue to turn in a mixed performance. While the Dow is down 19.49 points or 0.1 percent at 27,057.33, the Nasdaq is up 9.97 points or 0.1 percent at 8,163.51 and the S&P 500 is up 2.10 points or 0.1 percent at 3,000.06.
The lack of direction being shown by stocks comes as traders seem reluctant to make significant moves ahead of the Federal Reserve's monetary policy decision on Wednesday.
The Fed is widely expected to lower interest rates by another 25 basis points, with CME Group's FedWatch Tool currently indicating a 63.5 percent chance of a quarter-point rate cut.
Traders are likely to pay close attention to the Fed's accompanying statement for clues about the long-term outlook for rates.
Uncertainty about the U.S. response to the recent attacks on Saudi Arabian oil facilities may also be keeping some traders on the sidelines.
President Donald Trump has indicated the U.S. is prepared to respond militarily but has stopped short of definitively blaming Iran for the attacks.
Trump told reporters diplomacy has not been exhausted when it comes to Iran and would not rule out meeting with Iranian President Hassan Rouhani on the sidelines of the United Nations General Assembly next week.
On the U.S. economic front, the Fed released a report showing industrial production rebounded by much more than anticipated in the month of August.
The report said industrial production climbed by 0.6 percent in August after edging down by a revised 0.1 percent in August.
Economists had expected industrial production to rise by 0.2 percent compared to the 0.2 percent dip originally reported for the previous month.
A separate report from the National Association of Home Builders showed an unexpected improvement in U.S. homebuilder confidence in the month of September.
The report said the NAHB/Wells Fargo Housing Market Index inched up to 68 in September from an upwardly revised August reading of 67.
Economists had expected the index to come in unchanged compared to the 66 originally reported for the previous month.
Sector News
Most of the major sectors are showing only modest moves on the day, although substantial weakness remains visible among oil service stocks.
The Philadelphia Oil Service Index has tumbled by 3.9 percent, partly offsetting the 8.8 percent spike seen in the previous session.
The pullback by oil service stocks comes as the price of crude oil has fallen sharply after a report from Reuters said Saudi oil production will be restored faster than initially expected.
Crude oil for October delivery is plunging $3.02 to $59.88 a barrel after skyrocketing $8.05 to $62.90 a barrel on Monday.
Networking, steel, and banking stocks are also seeing notable weakness in mid-day trading, while gold stocks have shown a strong move to the upside.
The NYSE Arca Gold Bugs Index has surged up by 2.3 percent, with the strength in the sector coming even though the price of the precious metal has shown a lack of direction on the day.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Tuesday. Japan's Nikkei 225 Index inched up by 0.1 percent, while Hong Kong's Hang Seng Index tumbled by 1.2 percent.
The major European markets also ended the day mixed. While the French CAC 40 Index rose by 0.2 percent, the U.K.'s FTSE 100 Index closed just below the unchanged line and the German DAX Index edged down by 0.1 percent.
In the bond market, treasuries have moved to the upside as traders look ahead to tomorrow's Fed decision. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4 basis points at 1.801 percent.
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