U.S. Stocks Pull Back Off Best Levels But Remain Mostly Positive

After showing a strong move to the upside early in the session, stocks have given back ground over the course of the trading day on Tuesday. The major averages have pulled back well off their highs of the session but remain in positive territory.

The Dow surged by more than 300 points in early trading but is currently posting a relatively modest gain of 146.19 points or 0.4 percent at 33,082.60. The Nasdaq is up 61.93 points or 0.5 percent at 13,080.26 and the S&P 500 is up 17.42 points or 0.4 percent at 4,234.46.

The early strength on Wall Street partly reflects a positive reaction to the latest batch of earnings news, as a number of big-name companies reported better than expected quarterly results.

Shares of General Electric (GE) remain sharply higher after the conglomerate reported third quarter results that exceeded analyst estimates and raised its full-year guidance.

Diversified manufacturer 3M Co. (MMM) is also seeing notable strength after reporting better than expected third quarter results and boosting its full-year profit forecast.

Shares of Coca-Cola (KO) have also shown a strong move to the upside after the beverage giant reported third quarter results that beat expectations and raised its full-year forecast.

Buying interest has waned over the course of the session, however, with some traders expressing caution ahead of the release of quarterly results from tech giants Alphabet (GOOGL) and Microsoft (MSFT) after the close of trading.

Traders may also be reluctant to make significant moves amid a lack of major U.S. economic data, with several key reports due to be released in the coming days.

Sector News

Computer hardware stocks continue to see substantial strength on the day, with the NYSE Arca Computer Hardware Index surging by 3.8 percent after ending the previous session at its lowest closing level in almost five months.

Computer peripherals maker Logitech (LOGI) is posting a standout gain after reporting better than expected fiscal second quarter results and raising its full-year guidance.

Significant strength also remains visible among steel stocks, as reflected by the 2.4 percent jump by the NYSE Arca Steel Index. The index is bouncing off a four-month closing low.

Utilities stocks have also shown a strong move to the upside over the course of the session, driving the Dow Jones Utility Average up by 2.1 percent.

Telecom and networking stocks also continue to see notable strength, while energy and airline stocks have moved lower as the day has progressed.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index edged up by 0.2 percent, while China’s Shanghai Composite Index advanced by 0.8 percent.

The major European markets also moved to the upside on the day. While the U.K.’s FTSE 100 Index crept up by 0.2 percent, the German DAX Index and the French CAC 40 Index climbed 0.5 percent and 0.6 percent, respectively.

In the bond market, treasuries have bounced back near the unchanged line after seeing early weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 4.831 percent.

Source: Read Full Article