After coming under pressure early in the session, stocks have regained some ground over the course of the trading day on Thursday. The major averages have climbed well off their worst levels of the day but remain in negative territory.
Currently, the major averages are posting moderate losses. The Dow is down 120.02 points or 0.5 percent at 24,537.78, the Nasdaq is down 23.93 points or 0.3 percent at 7,757.59 and the S&P 500 is down 8.25 points or 0.3 percent at 2,759.07.
The early weakness on Wall Street was partly due to lingering concerns about the trade dispute between the U.S. and China along with uncertainty about the outcome of this week's OPEC meeting.
Saudi Arabia and Russia are reportedly pushing for an increase in oil production, with OPEC expected to announce its decision on output on Friday.
Notable declines by some online retailers also weighed on the Nasdaq after the Supreme Court ruled states can force online shoppers to pay sales tax.
On the U.S. economic front, the Labor Department released a report showing a modest decrease in initial jobless claims in the week ended June 16th.
The report said initial jobless claims dipped to 218,000, a decrease of 3,000 from the previous week's revised level of 221,000.
Economists had expected jobless claims to inch up to 220,000 from the 218,000 originally reported for the previous week.
Meanwhile, the Conference Board released a report showing a slightly smaller than expected increase by its index of leading economic indicators in month of May.
The Conference Board said its leading economic index edged up by 0.2 percent in May after climbing by 0.4 percent in April. Economists had expected the index to rise by 0.3 percent.
"The U.S. LEI still points to solid growth but the current trend, which is moderating, indicates that economic activity is not likely to accelerate," said Ataman Ozyildirim, Director of Business Cycles and Growth Research at the Conference Board.
A separate report from the Philadelphia Federal Reserve showed a much bigger than expected slowdown in the pace of growth in regional manufacturing activity in the month of June.
The Philly Fed said its index for current general activity slumped to 19.9 in June from 34.4 in May. While a positive reading still indicates growth in regional manufacturing activity, the index had been expected to dip to 29.0.
Sector News
Despite the recovery attempt by the broader markets, steel stocks continue to see significant weakness in mid-day trading. The NYSE Arca Steel Index is currently down by 1.5 percent.
The weakness among steel stocks likely reflects continued concerns about the potential impact of the escalating trade dispute between the U.S. and China.
Oil producer and oil service stocks are also seeing considerable weakness ahead of the OPEC decision, with the NYSE Arca Oil Index and the Philadelphia Oil Service Index falling by 1.5 percent and 1.3 percent, respectively.
Biotechnology stocks are also giving back ground after moving notably higher over the two previous sessions, while most of the other major sectors are showing more modest moves on the day.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan's Nikkei 225 Index climbed by 0.6 percent, while Hong Kong's Hang Seng Index slumped by 1.4 percent.
Meanwhile, the major European markets all moved to the downside on the day. While the German DAX Index plunged by 1.4 percent, the French CAC 40 Index tumbled by 1.1 percent and the U.K.'s FTSE 100 Index dropped by 0.9 percent.
In the bond market, treasuries have pulled back off their best levels but continue to see modest strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.3 basis points at 2.915 percent.
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