Stocks remain mostly positive in mid-afternoon trading on Tuesday, although buying interest has waned from earlier in the session. The major averages have pulled back well off their best levels of the day but remain in positive territory.
While the markets saw early strength due in part to polls suggesting that the upcoming Greek elections could result in a coalition government that supports the austerity measures, stocks pulled back rather sharply on news that Egan Jones downgraded Spain's credit rating.
Selling pressure waned shortly afterward, however, with traders focusing on the news out of Greece as well as speculation that China will announce further stimulus measures.
Considerable strength remains visible among steel stocks, as reflected by the 2 percent gain being posted by the NYSE Arca Steel Index. The strength in the sector reflects easing concerns about the outlook for global demand.
Networking stocks have also shown a strong move to the upside on the day, driving the NYSE Arca Networking Index up by 1.6 percent. Chemical, housing, trucking, and semiconductor stocks are also posting notable gains.
On the other hand, gold stocks have come under pressure, dragging the NYSE Arca Gold Bugs Index down by 2.6 percent. The weakness in the sector comes as gold for June delivery has tumbled $20.20 to $1,548.70 an ounce.
The major averages have moved roughly sideways in recent trading, holding on to moderate gains. The Dow is up 68.23 points or 0.6 percent at 12,523.06, the Nasdaq is up 17.41 points or 0.6 percent at 2,854.94 and the S&P 500 is up 7.58 points or 0.6 percent at 1,325.40.
by RTT Staff Writer
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