Major Averages Climb Back Near Unchanged Line After Initial Weakness

(RTTNews) - After moving sharply lower at the start of trading on Monday, stocks have staged a notable recovery attempt over the course of the session. Renewed optimism about a potential agreement in Washington has helped to lift the markets off their worst levels.

Despite the recovery attempt by the broader markets, significant weakness remains visible among housing stocks. The Philadelphia Housing Sector Index is down by 1.2 percent after ending last week with two days of strong gains.

D.R. Horton (DHI), KB Home (KBH) and Standard Pacific (SPF) are turning in some of the housing sector's worst performances.

Utilities stocks also continue to see notable weakness in mid-day trading, with the Dow Jones Utilities Average down by 1 percent.

Meanwhile, tobacco stocks have shown a strong move to the upside over the course of the session, driving the NYSE Arca Tobacco Index up by 1.2 percent. With the gain, the index has reached a two-month closing high.

The major averages have climbed back near the unchanged line and are currently turning in a mixed performance. While the Nasdaq is up 2.01 points or 0.1 percent at 3,793.88, the Dow is down 17.71 points or 0.1 percent at 15,219.40 and the S&P 500 is down 2.31 points or 0.1 percent at 1,700.89.