Stocks have moved mostly higher in early trading on Tuesday amid optimism about the likelihood of further stimulus from the Federal Reserve. The major averages have all moved to the upside after ending the previous session mixed.
The early strength on Wall Street comes as the Federal Reserve convenes a two-day monetary policy meeting, with the central bank expected to announce additional measures to stimulate the economy following the end of the meeting on Wednesday.
A recent batch of disappointing economic data has added to the optimism about further stimulus amid continued concerns about the impact of the ongoing financial crisis in Europe.
The Commerce Department released a report before the start of trading showing a decrease in housing starts in the month of May, although the drop came from a notably upwardly revised level in April.
Software stocks have shown a strong upward move in early trading, driving the Dow Jones Software Index up by 2.7 percent. Oracle (ORCL) is leading the sector higher after reporting better than expected fourth quarter results.
Considerable strength has also emerged among banking stocks, with the KBW Bank Index advancing by 1.4 percent. The strength in the sector reflects the optimism about further stimulus from the Fed.
Steel, chemical, healthcare, and brokerage stocks are also seeing early strength, moving higher along with most of the major sectors.
The major averages are currently posting notable gains, near their highs for the young session. The Dow is up 66.45 points or 0.5 percent at 12,808.27, the Nasdaq is up 24.03 points or 0.8 percent at 2,919.36 and the S&P 500 is up 9.18 points or 0.7 percent at 1,353.96.
by RTT Staff Writer
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