Stocks have shown a strong move to the upside during trading on Tuesday, regaining ground after moving sharply lower over the past several sessions. The major averages have all moved notably higher.
Currently, the major averages are just off their highs of the session. The Dow is up 539.42 points or 1.4 percent at 39,242.69, the Nasdaq is up 274.89 points or 1.7 percent at 16,474.98 and the S&P 500 is up 88.49 points or 1.7 percent at 5,274.82.
Bargain hunting has contributed to the strength on Wall Street, as some traders look to pick up stocks at relatively reduced levels.
The sell-off seen in recent days has dragged the Nasdaq and the S&P 500 down to three-month lows amid concerns about the outlook for the U.S. economy.
“Pockets of volatility are expected to continue as August and September give way to a calmer seasonal period,” said Quincy Krosby, Chief Global Strategist for LPL Financial. “However, it’s important to remember pockets of opportunity are always on the other side of the storm.”
A positive reaction to some of the latest corporate earnings news has also generated buying interest, with shares of Uber (UBER) spiking by 7.7 percent after the ride-sharing company reported better than expected second quarter results.
Industrial equipment maker Caterpillar (CAT) has also moved sharply higher after reporting second quarter results that exceeded analyst estimates on both the top and bottom lines.
Shares of CSX Corp. (CSX) have also shown a strong move to the upside after the rail transportation company reported better than expected second quarter earnings.
In U.S. economic news, the Commerce Department released a report on Tuesday showing the U.S. trade deficit narrowed in the month of June.
The Commerce Department said the trade deficit shrank to $73.1 billion in June from a revised $75.0 billion in May.
Economists had expected the trade deficit to decrease to $72.4 billion from the $75.1 billion originally reported for the previous month.
The narrower trade deficit came as the value of exports jumped by 1.5 percent to $265.9 billion, while the value of imports rose by 0.6 percent to $339.0 billion.
Sector News
Telecom stocks have shown a substantial move to the upside on the day, with the NYSE Arca North American Telecom Index skyrocketing by 8.2 percent.
Significant strength is also visible among airline stocks, as reflected by the 3.2 percent surge by the NYSE Arca Airline Index.
Semiconductor stocks have also moved sharply higher following recent weakness, driving the Philadelphia Semiconductor Index up by 2.2 percent.
Software, commercial real estate and brokerage stocks are also seeing considerable strength amid a broad based rebound on Wall Street.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index soared by 10.2 percent, while South Korea’s Kospi jumped by 3.3 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.’s FTSE 100 Index is up by 0.1 percent, the German DAX Index is down by 0.2 percent and the French CAC 40 Index is down by 0.5 percent.
In the bond market, treasuries are giving back ground after moving sharply higher in recent sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 7.6 basis points at 3.858 percent.
Business News
U.S. Stocks Showing Strong Move Back To The Upside
2024-08-06 14:57:32
