Major Averages Close Notably Lower On First Trading Day Of 2014

(RTTNews) - Following the standout performance that was seen last year, stocks started the New Year on a significantly more negative note. The drop on Thursday marked the first time since 2008 that the markets moved to the downside on the first trading day of the year.

Tobacco stocks saw substantial weakness throughout the session, resulting in a 2.6 percent drop by the NYSE Arca Tobacco Index. With the loss, the index pulled back toward the five-month closing low set last month.

Universal (UVV) and Alliance One (AOI) turned in two of the tobacco sector's worst performances, falling by 3.6 percent and 3 percent, respectively.

With the disappointing Chinese data raising concerns about demand, steel stocks also saw considerable weakness on the day. The NYSE Arca Steel Index fell by 2.1 percent, pulling back off the eleven-month closing high set on Tuesday.

Significant weakness was also visible among computer hardware stocks, as reflected by the 1.8 percent loss posted by the NYSE Arca Computer Hardware Index. The loss by the index came after it ended the previous session at a record closing high.

Oil service, utilities, and transportation stocks also came under pressure, moving lower along with most of the other major sectors.

However, gold stocks bucked the downtrend by the broader markets, benefiting from a sharp increase by the price of the precious metal. With gold for February delivery jumping $22.90 to $1,225.20 an ounce, the NYSE Arca Gold Bugs Index surged up by 3.9 percent.

The major averages moved roughly sideways going into the close of trading, stuck firmly in the red. The Dow tumbled 135.31 points or 0.8 percent to 16,441.35, the Nasdaq fell 33.52 points or 0.8 percent to 4,143.07 and the S&P 500 slid 16.38 points or 0.9 percent to 1,831.98.