Major Averages Close Modestly Lower But Well Off Worst Levels - U.S. Commentary

(RTTNews) - After coming under pressure early in the session, stocks regained some ground but remained mostly in negative territory. The pullback on the day came on the heels of the modest uptick seen in the previous session.

The major averages ended the day modestly lower but well off their worst levels of the day. The Dow edged down 6.72 points or less than a tenth of a percent to 20,651.30, the Nasdaq dipped 14.15 points or 0.2 percent to 5,866.77 and the S&P 500 slipped 3.38 points or 0.1 percent to 2,353.78.

The weakness on Wall Street partly reflected geopolitical concerns on the heels of President Donald Trump's decision to launch a missile strike at an airbase in Syria.

Trump also lashed out at North Korea on Twitter on Tuesday, urging China to do more to rein in its communist neighbor.

"I explained to the President of China that a trade deal with the U.S. will be far better for them if they solve the North Korean problem!" Trump tweeted.

He added, "North Korea is looking for trouble. If China decides to help, that would be great. If not, we will solve the problem without them! U.S.A."

The tweets from Trump come following his meeting with Chinese President Xi Jinping at his Mar-a-Lago resort in Florida last week.

Trading activity remained somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.

The economic calendar for the week starts off relatively quiet but picks up in the coming days, including with the release of some key data while the markets are closed on Friday.

Reports on retail sales, producer and consumer prices, and import and export prices may attract attention later this week.

On the earnings front, financial giants Citigroup (C), JPMorgan Chase (JPM), and Wells Fargo (WFC) are due to report their quarterly results next Thursday.

Telecom stocks showed a significant move to the downside, dragging the NYSE Arca Telecom Index down by 1.2 percent. With the drop, the index fell to its lowest closing level in two months.

Semiconductor and trucking stocks also saw notable weakness, while gold stocks rallied amid an increase by the price of the precious metal.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index fell by 0.3 percent, while China's Shanghai Composite Index climbed by 0.6 percent.

The major European markets also ended the day mixed. While the U.K.'s FTSE 100 Index rose by 0.2 percent, the French CAC 40 Index edged down by 0.1 percent and the German DAX Index fell by 0.5 percent.

In the bond market, treasuries showed a strong move to the upside, benefiting from their appeal as a safe haven. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 6.8 basis points to 2.298 percent.