Stocks have shown a strong move to the upside in morning trading on Tuesday, rebounding following the significant downturn seen over the course of the previous session. The major averages have all climbed firmly into positive territory.
In recent trading, the major averages have reached new highs for the session. The Dow is up 413.32 points or 1.3 percent at 31,485.93, the Nasdaq is up 154.20 points or 1.4 percent at 11,514.25 and the S&P 500 is up 56.70 points or 1.5 percent at 3,887.55.
The rebound on Wall Street comes as traders make another attempt at bargain hunting after the rally seen in early trading on Monday faded as the day progressed.
Optimism about upcoming earnings news has also been cited as a reason for the rally, with a majority of the S&P 500 companies beating expectations so far this season.
Toymaker Hasbro (HAS) and oil services giant Halliburton (HAL) are posting notable gains after reporting better than expected quarterly earnings.
Shares of Johnson & Johnson (JNJ) are also seeing modest strength after the healthcare giant reported second quarter results that beat analyst estimates but cut its full-year guidance.
On the other hand, shares of IBM Corp. (IBM) have moved sharply lower after the tech giant reported better than expected second quarter results but lowered its cash flow forecast.
Traders have largely shrugged off a report from the Commerce Department unexpectedly showing a continued decline in housing starts in the month of June.
The Commerce Department said housing starts slumped by 2.0 percent to an annual rate of 1.559 million after plunging by 11.9 percent to a revised rate of 1.591 million in May.
The continued decrease came as a surprise to economists, who had expected housing starts to jump by 2.3 percent to an annual rate of 1.585 million from the 1.549 million originally reported for the previous month.
With the unexpected decrease, housing starts dropped to the lowest annual rate since hitting 1.505 million in April of 2021.
The report showed building permits also fell by 0.6 percent to an annual rate of 1.685 million in June after tumbling by 7.0 percent to a rate of 1.695 million in May.
Building permits, an indicator of future housing demand, were expected to slump by 2.7 percent to an annual rate of 1.650 million.
Airline stocks have shown a substantial move to the upside in morning trading, with the NYSE Arca Airline Index soaring by 3.5 percent.
Significant strength has also emerged among chemical stocks, as reflected by the 3 percent surge by the S&P Chemical Sector Index.
Semiconductor stocks are also turning in a strong performance on the day, driving the Philadelphia Semiconductor Index up by 2.8 percent.
Computer hardware, networking and banking stocks are also seeing considerable strength, moving higher along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index climbed by 0.7 percent, while Hong Kong’s Hang Seng Index fell by 0.9 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the French CAC 40 Index has surged by 1.6 percent, German DAX Index is up by 1.0 percent and the U.K.’s FTSE 100 Index is up by 0.7 percent.
In the bond market, treasuries have come under pressure amid the rally on Wall Street. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 6.3 basis points at 3.023 percent.
Business News
U.S. Stocks Showing Strong Move Back To The Upside
2022-07-19 14:35:35
