Stocks have moved modestly higher over the course of morning trading on Tuesday after showing a lack of direction earlier in the session. While buying interest has remained somewhat subdued, the major averages have climbed more firmly into positive territory.
The strength that has emerged on Wall Street comes following the release of a report from the Commerce Department showing a bigger than expected increase in factory orders in the month of May.
The report showed that factory orders rose by 0.7 percent in May following two consecutive monthly decreases. Economists had expected orders to edge up by 0.1 percent.
Resource stocks have helped to lead the markets higher, with gold stocks posted particularly strong gains on the day. The NYSE Arca Gold Bugs Index has surged up by 3.4 percent, with the strength in the sector coming as the price of gold has jumped by more than $20 an ounce.
Significant strength has also emerged among energy stocks, which are moving higher along with the price of crude oil. Crude for August delivery is currently surging up by $3.59 to $87.34 a barrel.
Outside of the resource sector, strength is also visible among tech stocks, with computer hardware, semiconductor, and networking stocks posting notable gains. On the other hand, airline stocks are bucking the uptrend.
The major averages have seen some further upside in recent trading, reaching new highs for the session. The Dow is up 55.10 points or 0.4 percent at 12,926.49, the Nasdaq is up 15.94 points or 0.5 percent at 2,967.17 and the S&P 500 is up 6.69 points or 0.5 percent at 1,372.20.
by RTT Staff Writer
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