Major Averages Close In The Red As Early Buying Interest Fades

(RTTNews) - Stocks moved mostly lower over the course of the trading session on Wednesday after failing to sustain an early move to the upside. With the downturn on the day, the major averages added to the losses posted in the two previous sessions.

Housing stocks came under considerable selling pressure on the day, dragging the Philadelphia Housing Sector Index down by 2.3 percent. With the loss, the index fell to its lowest closing level in almost a month.

Meritage Homes (MTH) and PulteGroup (PHM) turned in two of the housing sector's worst performances, tumbling by 4.9 percent and 4.1 percent, respectively.

Significant weakness also emerged among brokerage stocks, as reflected by the 1.9 loss posted by the NYSE Arca Broker/Dealer Index. The index also fell to a nearly one-month closing low.

Computer hardware, biotechnology, and internet stocks also saw notable weakness, contributing to the steep drop by the tech-heavy Nasdaq.

On the other hand, oil service stocks held on to some of their early gains, resulting in a 2.2 percent jump by the Philadelphia Oil Service Index. The gain by the index came after it ended the previous session at its lowest closing level in over two months.

Gold, steel, railroad, and natural gas also ended the day notably higher, regaining some ground following recent weakness.

The major averages all closed in negative territory, with the Nasdaq posting a particularly steep loss. The Nasdaq plunged 75.38 points or 1.5 percent to 5,022.87, while the Dow fell 75.70 points or 0.4 percent to 17,492.30 and the S&P 500 slid 15.97 points or 0.8 percent to 2,047.62.