After showing a strong upward move in morning trading on Monday, stocks continue to perform well in the mid-afternoon. The major averages have bounced well off the four-month closing lows that were set in the previous session.
Bargain hunting has contributed to the rebound by the markets, with stocks regaining some ground after trending lower throughout the month of May. Nonetheless, the markets continue to show considerable weakness for the month.
Oil service stocks have shown a strong move to the upside on the day, resulting in a 3.2 percent gain by the Philadelphia Oil Service Index. The strength in the sector comes amid a rebound by the price of crude oil, which is bouncing off a six-month low.
Significant strength has also emerged among computer hardware stocks, as reflected by the 2.9 percent gain being posted by the NYSE Arca Computer Hardware Index. The gain by the index comes after it ended the previous session at its lowest closing level in well over four months.
Gold, steel, health insurance, and biotechnology stocks are also posting notable gains, moving higher along with most of the major sectors.
The major averages are hovering firmly in positive territory, near their best levels of the day. The Dow is up 95.93 points or 0.8 percent at 12,465.31, the Nasdaq is up 55.57 points or 2 percent at 2,834.36 and the S&P 500 is up 15.84 points or 1.2 percent at 1,311.06.
by RTT Staff Writer
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