Stocks have moved mostly lower in early trading on Tuesday despite the release of an upbeat report on U.S. retail sales. The major averages have all moved to the downside after ending the previous session on opposite sides of the unchanged line.
The major averages have climbed off their lows for the young session but remain in the red. The Dow is down 28.07 points or 0.2 percent at 13,479.25, the Nasdaq is down 20.75 points or 0.7 percent at 3,096.75 and the S&P 500 is down 4.76 points or 0.3 percent at 1,465.92.
The weakness on Wall Street comes as worries about renewed gridlock in Washington regarding the debt ceiling has overshadowed a Commerce Department report showing stronger than expected retail sales growth.
The report showed that retail sales rose by 0.5 percent in December following a revised 0.4 percent increase in November. Economists had expected sales to edge up by 0.2 percent compared to the 0.3 percent growth originally reported for the previous month.
However, Rob Carnell, chief international economist at ING, said the "good news is likely to be short-lived," noting that the expiration of the payroll tax cuts will lead to a "nasty knock to wages in the first quarter of 2013."
A separate report from the Labor Department showed a slightly bigger than expected drop in producer prices in December, while the New York Federal Reserve said its index of regional manufacturing activity remained negative for the sixth consecutive month in January.
Computer hardware stocks are seeing early weakness, with the NYSE Arca Computer Hardware Index down by 1 percent. Apple (AAPL) is posting a notable loss, falling by 2.1 percent.
Biotechnology, internet, and semiconductor stocks have also moved to the downside, although selling pressure remains relatively subdued
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In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. While Japan's Nikkei 225 Index advanced by 0.7 percent, Hong Kong's Hang Seng Index edged down by 0.1 percent.
Meanwhile, the major European markets have all moved to the downside on the day. The U.K.'s FTSE 100 Index has dipped 0.1 percent, while the French CAC 40 Index is down by 0.3 percent and the German DAX Index is down by 0.9 percent.
In the bond market, treasuries are seeing notable strength, extending a recent upward move. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.6 basis points at 1.811 percent. (RTTNews)
