WASHINGTON (dpa-AFX) - Stocks are turning in a relatively lackluster
performance during trading on Tuesday but are largely holding on to yesterday's
strong gains. The Nasdaq and the S&P 500 are lingering near the unchanged line
after ending the previous session at record closing highs.

Currently, the major averages are narrowly mixed. While the S&P 500 is up 3.18
points or 0.1 percent at 5,476.41, the Nasdaq is down 18.05 points or 0.1
percent at 17,838.97 and the Dow is down 24.57 points or 0.1 percent at
38,753.53.

The choppy trading on Wall Street comes following the release of a mixed batch
of U.S. economic data, with reports on retail sales and industrial production
telling two separate stories.

The Commerce Department released a report this morning showing retail sales
crept up by 0.1 percent in May after dipping by a revised 0.2 percent in April.

Economists had expected retail sales to rise by 0.2 percent compared to the
unchanged reading originally reported for the previous month.

Excluding an increase in sales by motor vehicle and parts dealers, retail sales
edged down by 0.1 percent in May after slipping by a revised 0.1 percent in
April.

Economists had expected ex-auto sales to climb by 0.2 percent, matching the
increase originally reported for the previous month.

'Retail sales came in really light this morning and while that may be good news
for inflation hawks, it could be the beginning of a slowdown in growth, which
would hurt a lot more than a couple of interest rate cuts would help,' said
Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance.

Meanwhile, the Federal Reserve released a separate report showing industrial
production increased by much more than expected in the month of May.

The Fed said industrial production jumped by 0.9 percent in May after coming in
unchanged in April. Economists had expected industrial production to rise by 0.3
percent.

Sector News

Despite the lackluster performance by the broader markets, computer hardware
stocks have shown a strong move to the upside, driving the NYSE Arca Computer
Hardware Index up by 1.6 percent to a record intraday high.

Oil service stocks are also seeing considerable strength amid another sharp
increase by the price of crude oil, with the Philadelphia Oil Service Index
climb by 1.6 percent.

Semiconductor and gold stocks are also seeing notable strength on the day, while
housing stocks have come under pressure, dragging the Philadelphia Housing
Sector Index down by 1.2 percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly
higher during trading on Tuesday. Japan's Nikkei 225 Index advanced by 1.0
percent, while China's Shanghai Composite Index rose by 0.5 percent.

The major European markets have also moved to the upside on the day. While the
French CAC 40 Index is up by 0.8 percent, the U.K.'s FTSE 100 Index is up by 0.6
percent and the German DAX Index is up by 0.4 percent.

In the bond market, treasuries have rebounded following the pullback seen in the
previous session. As a result, the yield on the benchmark ten-year note, which
moves opposite of its price, is down by 2.7 basis points at 4.252 percent.



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