Stocks have moved to the upside in early trading on Tuesday, regaining some ground after ending the previous session sharply lower. The major averages have moved firmly into positive territory, partly offsetting Monday's steep losses.
Bargain hunting has contributed to the early strength on Wall Street, with some traders picking up stocks at reduced levels following Monday's sell-off.
Nonetheless, stocks remain well off their recent highs, as lingering concerns about the ongoing European debt crisis have helped to keep buying interest somewhat subdued.
Housing stocks are seeing notable strength following the release of a report from Standard & Poor's showing a bigger than expected increase in home prices in April. Reflecting the strength in the housing sector, the Philadelphia Housing Sector Index is up by 1 percent.
Early strength is also visible among computer hardware stocks, as reflected by the 1 percent gain being posted by the NYSE Arca Computer Hardware Index. Seagate Technology (STX) has helped to lead the sector higher on news that it is being added to the S&P 500.
Airline, biotechnology, and software stocks are also seeing early strength, while most of the major sectors are showing more modest moves.
The major averages have pulled back off their highs for the young session in the past few minutes but are holding on to gains. The Dow is up 21.72 points or 0.2 percent at 12,524.38, the Nasdaq is up 15.29 points or 0.5 percent at 2,851.45 and the S&P 500 is up 4.68 points or 0.4 percent at 1,851.45.
by RTT Staff Writer
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