After moving higher at the open, stocks have given back some ground over the course of early trading on Tuesday. The major averages have pulled back well off their highs for the young session but remain in positive territory.
The major averages are currently clinging to modest gains. The Dow is up 37.69 points or 0.3 percent at 12,764.90, the Nasdaq is up 4.25 points or 0.2 percent at 2,901.19 and the S&P 500 is up 2.55 points or 0.2 percent at 1,356.19.
The early strength on Wall Street was partly due to a positive reaction to quarterly results from well known companies such as Goldman Sachs (GS) and Coca-Cola (KO).
Shares of Goldman Sachs are seeing modest strength after the company reported second quarter adjusted earnings of $1.78 per share on revenues of $6.6 billion compared to analyst estimates for earnings of $1.12 per share on revenues of $6.4 billion.
Coca-Cola is posting a more substantial gain after the beverage giant also reported better than expected second quarter results.
The pullback by the markets came as traders seemed reluctant to make any significant moves ahead of Federal Reserve Chairman Ben Bernanke's testimony before the Senate Banking Committee.
Bernanke's comments are likely to be closely scrutinized for indications regarding the likelihood of further stimulus from the central bank.
Most of the major sectors are showing only modest moves in early trading, although strength is visible among chemical, railroad, and telecom stocks.
On the other hand, some trucking and networking stocks have come under pressure, adding to the steep losses posted in the previous session.
In overseas trading, stock markets across the Asia-Pacific region moved to the upside during trading on Tuesday. Japan's Nikkei 225 Index ended the day up by 0.4 percent, while Hong Kong's Hang Seng Index surged up by 1.8 percent.
Meanwhile, the major European markets have turned mixed over the course of the trading day. While the U.K.'s FTSE 100 Index is down by 0.2 percent, the French CAC 40 Index and the German DAX Index are up by 0.7 percent and 0.6 percent, respectively.
In the bond market, treasuries are giving back some ground after trending higher in recent sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.9 basis points at 1.493 percent.
by RTT Staff Writer
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