US stocks are mostly moving after seeing choppy early trading
(RTTNews) – After initially showing a lack of direction, stocks mostly rose during the trading day on Tuesday. The major averages all moved higher, with the Nasdaq and S&P 500 rebounding after ending the previous session in the red.
Major averages have retreated from their highs in recent trades, but currently remain firmly positive. The Dow Jones is up 275.53 points or 0.8% at 35,366.66, the Nasdaq is up 122.76 points or 0.9% at 14,138.43 and the S&P 500 is up 27.63 points or 0.6% at 4,511.50.
The strength that has emerged on Wall Street comes as major averages rebounded from multi-month lows set in late January but remain well below their record highs.
Traders may continue to buy stocks at relatively reduced levels as they digest the latest batch of quarterly earnings news.
Harley-Davidson (HOG) shares are rising sharply after the motorcycle maker reported a surprise fourth-quarter profit on revenue that beat analysts’ estimates.
Education technology company Chegg (CHGG) is also seeing significant strength after announcing better-than-expected fourth-quarter results and providing an upbeat forecast.
Meanwhile, shares of Pfizer (PFE) fell after the pharmaceutical giant reported fourth-quarter earnings that beat expectations but weaker-than-expected revenue.
On the US economic front, the Commerce Department released a report showing that the US trade deficit widened slightly in December.
The Commerce Department said the trade deficit widened to $80.7 billion in December from a revised $79.3 billion in November.
Economists had expected the trade deficit to widen to $83.0 billion from $80.2 billion originally reported for the previous month.
The wider shortfall came as the value of imports jumped 1.6% to $308.9 billion, while the value of exports jumped 1.5% to $228.1 billion.
Extending the rally seen in the previous session, airline stocks are showing another substantial upward move, sending the NYSE Arca Airline Index up 2.9%.
Financials are also seeing significant strength amid rising Treasury yields, with the NYSE Arca Broker/Dealer Index and KBW Bank Index up 1.9% and 1.4%, respectively.
Considerable strength is also visible among steel stocks, as evidenced by the 1.7% jump in the NSYE Arca Steel Index.
Semiconductor, retail and housing stocks also rose notably, while energy stocks remain under pressure amid a sharp drop in the price of crude oil.
In overseas trading, stock markets in the Asia-Pacific region were mostly up in Tuesday’s trading. Japan’s Nikkei 225 index edged up 0.1%, while China’s Shanghai Composite Index climbed 0.7%.
Meanwhile, major European markets delivered a mixed performance on the day. While Britain’s FTSE 100 index edged down 0.1%, Germany’s DAX index and France’s CAC 40 index rose 0.2% and 0.3%, respectively.
In the bond market, Treasuries have come off their worst levels but remain firmly negative. As a result, the yield on the benchmark 10-year note, which moves opposite to its price, is up 3.8 basis points to 1.954%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.