U.S. stocks turned in a relatively lacklustre performance during trading on Tuesday, with traders seemingly reluctant to make significant moves following the long holiday weekend.
The Nasdaq and the S&P 500 spent much of the day lingering near the unchanged line, although the narrower Dow showed a notable move to the downside.
The major averages eventually ended the session. While the Nasdaq inched up 15.96 points or 0.1 percent to 11,095.11, the S&P 500 dipped 8.12 points or 0.2 percent to 3,990.97 and the Dow slumped 391.76 points or 1.1 percent to 33,910.85.
The choppy trading on Wall Street came as traders expressed some uncertainty about the near-term outlook for the markets following recent strength.
A steep drop by Goldman Sachs (GS) weighed on the Dow, with the financial giant plunging by 6.4 percent on the day.
The nosedive by shares of Goldman Sachs comes after the company reported fourth quarter earnings that missed analyst estimates.
Fellow Dow Component Travelers (TRV) also plunged by 4.6 percent after warning of weaker than expected fourth quarter earnings due to the significant winter storm that impacted much of the U.S and Canada in late December.
On the other hand, shares of Morgan Stanley (MS) surged by 5.9 percent after the company reported better than expected fourth quarter earnings.
The New York Federal Reserve released a report showing a significant contraction in regional manufacturing activity in the month of January.
The New York Fed said its general business conditions plunged to a negative 32.9 in January from a negative 11.2 in December, with a negative reading indicating a contraction. Economists had expected the index to climb to a negative 4.5.
Sectors
Most of the major sectors showed only modest moves on the day, contributing to the lacklustre performance by the broader markets.
Gold stocks showed a substantial move to the downside, however, dragging the NYSE Arca Gold Bugs Index down by 3.5 percent. The index ended last Friday’s trading at a seven-month closing high.
The pullback by gold stocks came amid a decrease by the price of the precious metal, with gold for February delivery falling $11.80 to $1,909.90 an ounce. Retail and steel stocks also saw notable weakness on the day, while oil service stocks moved higher along with the price of crude oil.
