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Major Averages Posting Modest Gains In Morning Trading - U.S. Commentary


After an initial move to the upside, stocks have given back ground over the course of morning trading on Tuesday. The major averages have pulled back off their best levels of the day but are currently in positive territory.

Currently, the Dow is up 21.05 points or 0.1 percent at 22,782.12, the Nasdaq is up 2.17 points or less than a tenth of a percent at 6,581.90 and the S&P 500 is up 2.13 points or 0.1 percent at 2,546.86.

The initial strength on Wall Street reflected recent upward momentum, which has driven the major averages to record highs.

However, a lack of major U.S. economic news has led traders to be reluctant to make more significant moves.

Later this week, trading may be impacted by the release of reports on producer and consumer prices and retail sales.

Earnings season is also looming, with financial giants Citigroup (C), JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) due to report their quarterly results in the coming days.

Despite the lackluster performance by the broader markets, airline stocks have shown a significant move to the upside on the day. Reflecting the strength in the sector, the NYSE Arca Airline Index has jumped by 1.6 percent.

Tobacco and oil service stocks are also seeing considerable strength, while modest weakness is visible among railroad stocks.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index climbed by 0.6 percent, while China's Shanghai Composite Index rose by 0.3 percent.

Meanwhile, the major European markets are turning in another mixed performance on the day. While the U.K.'s FTSE 100 Index is up by 0.2 percent, the French CAC 40 Index is down by 0.2 percent and the German DAX Index is down by 0.5 percent.

In the bond market, treasuries have shown a significant move to the upside following recent weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.5 basis points at 2.325 percent.

by RTTNews Staff Writer

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