Major Averages Reaching New Intraday Highs In Mid-Day Trading

Stocks have moved mostly higher over the course of the trading day on Wednesday, partly offsetting the pullback seen over the two previous sessions. The major averages have all climbed firmly into positive territory after an initial drop.

In recent trading, the major averages have reached new highs for the session. The Dow is up 201.48 points or 0.6 percent at 34,022.78, the Nasdaq is up 103.81 points or 0.8 percent at 13,890.08 and the S&P 500 is up 25.88 points or 0.6 percent at 4,160.82.

The rebound on Wall Street comes after the pullback seen over the two previous sessions dragged the Dow and the S&P 500 well off last Friday’s record highs.

Despite concerns about high valuations, traders have largely been reluctant to sell stocks amid worries about missing out on further upside.

Stocks linked to the economy reopening are seeing notable strength on the day, with shares of Norwegian Cruise Line (NCLH) spiking by 6.6 percent.

The jump by Norwegian comes after Goldman Sachs upgraded its rating on the cruise line operators stock to Buy from Neutral. Carnival (CCL) and Royal Caribbean (RCL) are also posting strong gains.

Intuitive Surgical (ISRG), Edwards Lifesciences (EW), and Tenet Healthcare (THC) are also seeing notable strength on the day after reporting better than expected quarterly results.

On the other hand, shares of Netflix (NFLX) have moved sharply lower, with the video streaming giant tumbling by 6.9 percent.

The steep drop by Netflix comes after the company reported first quarter earnings and revenues that beat estimates but much weaker than expected subscriber growth.

Sector News

Gold stocks continue to see considerable strength in mid-day trading, driving the NYSE Arca Gold Bugs Index up by 2 percent to its best intraday level in well over two months.

The strength in the gold sector comes amid an increase by the price of the precious metal, with gold for June delivery climbing $15.60 to $1,794 an ounce.

Significant strength also remains visible among chemical stocks, as reflected by the 1.6 percent gain being posted by the S&P Chemical Sector Index. The index is on pace to end the session at a record closing high.

Semiconductor stocks have also shown a strong move to the upside on the day, resulting in a 1.4 percent advance by the Philadelphia Semiconductor Index.

Oil, airline and tobacco stocks are also seeing notable strength in mid-day trading, rebounding after moving sharply lower in the previous session.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan’s Nikkei 225 Index plunged by 2 percent, while Hong Kong’s Hang Seng Index tumbled by 1.8 percent.

Meanwhile, the major European markets moved to the upside on the day. While the French CAC 40 Index advanced by 0.7 percent, the U.K.’s FTSE 100 Index and the German DAX Index rose by 0.5 percent and 0.4 percent, respectively.

In the bond market, treasuries have climbed off their worst levels but continue to see modest weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.1 basis points 1.573 percent.