Major Averages Close Modestly Lower After Yesterday's Rally

(RTTNews) - Following the rally seen going into the close of the previous session, stocks gave back some ground during trading on Thursday. Selling pressure remained relatively subdued, however, limiting the downside for the markets.

Gold stocks moved sharply lower over the course of the trading day, dragging the NYSE Arca Gold Bugs Index down by 3.7 percent. The weakness in the sector came amid a steep drop by the price of gold, with gold for December delivery plunging $28.80 to $1,147.30.

Substantial weakness was also visible among semiconductor stocks, as reflected by the 3 percent loss posted by the Philadelphia Semiconductor Index. With the loss, the index pulled back further off the three-month closing high set last Friday.

NXP Semiconductors (NXPI) helped to lead the sector lower after reporting mixed third quarter results and providing disappointing guidance.

Housing stocks also came under pressure on the heels of disappointing pending home sales data, resulting in a 2 percent drop by the Philadelphia Housing Sector Index. Meritage (MTH) posted a steep loss after reporting weaker than expected third quarter earnings.

Steel, networking, and brokerage stocks also saw notable weakness on the day, while trucking stocks showed a strong move back to the upside.

While the Dow and the S&P 500 briefly peeked above the unchanged line in late trading, the major averages all closed in the red.

The Dow dipped 23.72 points or 0.1 percent to 17,755.80, the Nasdaq fell 21.42 points or 0.4 percent to 5,074.27 and the S&P 500 edged down 0.94 points or less than a tenth of a percent to 2,089.41.