Dow Hits Two-Month Low Amid Broad Based Sell-Off

(RTTNews) - After moving sharply lower at the open, stocks have seen some further downside over the course of the trading day on Thursday. With the steep losses on the day, the Dow has fallen to its lowest intraday level in two months.

Most of the major sectors have shown notable moves to the downside on the day, reflecting broad based selling pressure on Wall Street.

Networking stocks continue to see substantial weakness in mid-day trading, with the NYSE Arca Networking Index tumbling by 2.7 percent. Alcatel-Lucent (ALU) is leading the sector lower after reporting disappointing second quarter results.

Considerable weakness also remains visible among biotechnology stocks, as reflected by the 2.6 percent loss being posted by the NYSE Arca Biotechnology Index. Nektar Therapeutics (NKTR) and Incyte (INCY) are posting particularly steep losses on the day.

Defense stocks have also shown a significant move to the downside, dragging the Philadelphia Defense Sector Index down by 2.4 percent to a three-month low.

Within the defense sector, L-3 Communications (LLL) has plunged by 16.3 percent after reporting weaker than expected second quarter earnings.

Oil service, semiconductor, computer hardware, and telecom stocks are also seeing notable weakness in mid-day trading.

The major averages have climbed off their worst levels in the past few minutes but continue to post steep losses. The Dow is down 203.39 points or 1.2 percent at 16,676.97, the Nasdaq is down 81.49 points or 1.8 percent at 4,381.41 and the S&P 500 is down 29.11 points or 1.5 percent at 1,940.96.