Major Averages Slide Into The Red In Early Trading

(RTTNews) - While selling pressure has remained somewhat subdued, stocks have moved mostly lower in early trading on Friday. The major averages have all slid into negative territory after ending the previous session moderately higher.

The early weakness on Wall Street is partly due to a continued decrease by the price of crude oil, with crude for January delivery tumbling $1.39 to $58.56 a barrel after ending the previous session below $60 a barrel for the first time in over five years.

The recent sell-off by the price of crude oil has led to some worries about how the drop in prices will affect the U.S. economy as a whole.

While lower gas prices may boost consumer spending in other areas, the drop in prices will hurt the oil and gas industry, which had been a major source of growth.

Nonetheless, a report from Thomson Reuters and the University of Michigan showing a bigger than expected jump in consumer sentiment has helped to limit the downside for the markets.

Defense stocks are seeing considerable weakness, however, with the Philadelphia Defense Sector Index plunging by 2 percent. Esterline Technologies (ESL) is leading the sector lower after reporting disappointing fourth quarter results.

Chemicals, gold, steel, and telecom stocks are also seeing early weakness, moving lower along with most of the other major sectors.

The major averages currently remain in the red, although the Nasdaq is down only 8.10 points or 0.2 percent at 4,700.06. The Dow is down 97.04 points or 0.6 percent at 17,499.30 and the S&P 500 is down 8.70 points or 0.4 percent at 2,026.63.