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Major Averages Finish Choppy Trading Session Modestly Higher - U.S. Commentary


Stocks showed a lack of direction over the course of the trading session on Tuesday before eventually ending the day modestly higher. With the gains on the day, the Dow and the Nasdaq ended the session at new record closing highs.

The Dow climbed 69.61 points or 0.3 percent to 22,830.68, the Nasdaq edged up 7.52 points or 0.1 percent to 6,587.25 and the S&P 500 rose 5.91 points or 0.2 percent to 2,550.64.

The higher close 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 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.

Tobacco stocks showed a significant move to the upside, adding to the strong gains posted in the previous session. Reflecting to the strength in the sector, the Dow Jones Tobacco Index Surged up by 1.8 percent.

Airline and utilities stocks also saw considerable strength on the day, while gold stocks came under pressure despite an increase by the price of the precious metal.

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 turned in another mixed performance on the day. While the U.K.'s FTSE 100 Index rose by 0.4 percent, the French CAC 40 Index closed just below the unchanged line and the German DAX Index dipped by 0.2 percent.

In the bond market, treasuries moved back to the upside following recent weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.5 basis points to 2.354 percent.

by RTTNews Staff Writer

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