Stocks have moved mostly higher over the course of the trading day on Tuesday, regaining some ground after ending the previous session firmly in negative territory. Buying interest has remained somewhat subdued, however, limiting the upside for the markets.
The major averages have pulled back off their highs for the session in recent trading but are holding on to notable gains. The Dow is up 96.61 points or 0.8 percent at 12,507.84, the Nasdaq is up 19.97 points or 0.7 percent at 2,829.70 and the S&P 500 is up 8.03 points or 0.6 percent at 1,316.96.
The rebound on Wall Street comes as some traders are picking up stocks at reduced levels following the sell-off that was seen in the previous session.
While stocks saw a strong upward move last week, the markets remain at relatively low levels following the steep drop that was seen throughout the month of May.
Nonetheless, traders seem somewhat reluctant to make significant bets amid lingering uncertainty about the financial situation in Europe.
Traders continue to digest news of a bailout for Spain, which has requested 100 billion euros from a euro area bailout fund in order to shore up its banking system.
On the economic front, the Labor Department released its report on import and export prices, showing a 1.0 percent drop in import prices and a 0.4 percent decrease in export prices.
The drop in import prices, which compared to economist estimates for a 1.1 percent decrease, was largely due to a 4.2 percent decrease in prices for fuel imports.
Among individual stocks, shares of Texas Instruments (TXN) are up by 2.5 percent after the chip maker narrowed its second quarter guidance. The company now expects earnings of $0.32 to $0.36 per share on revenues of $3.28 to $3.42 billion.
Juniper Networks (JNPR) is also trading higher after announcing a new stock buyback program to purchase up to $1 billion worth of its stock in addition to the $1 billion it approved in 2010.
Meanwhile, shares of FactSet Research Systems (FDS) have tumbled by 10 percent after the financial information company reported better than expected third quarter earnings but provided disappointing fourth quarter guidance.
Electronic storage stocks are seeing considerable strength in mid-day trading, with the NYSE Arca Disk Drive Index up by 2.2 percent. Quantum (QTM), SanDisk (SNDK), and Seagate Technology (STX) are turning in some of the sector's best performances.
Significant strength also remains visible among gold stocks, which are moving higher along with the price of the precious metal. With gold for August delivery climbing $19.50 to $1,616.30 an ounce, the NYSE Arca Gold Bugs Index is up by 2.2 percent.
Railroad stocks have also shown a strong upward move on the day, driving the Dow Jones Railroads Index up by 1.9 percent. Semiconductor, networking, and biotechnology stocks are also posting notable gains, moving higher along with most of the major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Tuesday, partly offsetting Monday's strong gains. Japan's Nikkei 225 Index fell by 1 percent, while Hong Kong's Hang Seng Index ended the day down by 0.4 percent.
Meanwhile, the major European markets all moved to the upside on the day. While the U.K.'s FTSE 100 Index advanced by 0.8 percent, the German DAX Index rose by 0.3 percent, and the French CAC 40 Index edged up by 0.1 percent.
In the bond market, treasuries have moved back to the downside after turning higher over the course of the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.2 basis points at 1.632 percent.
by RTT Staff Writer
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