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Stocks Pull Back Off Best Levels But Remain Positive - U.S. Commentary


Stocks have pulled back off their best levels of the day but continue to see modest strength in morning trading on Tuesday. The tech-heavy Nasdaq reached a record intraday high in early trading but has given back ground since then.

Currently, the major averages remain in positive territory. The Dow is up 90.44 points or 0.4 percent at 25,269.05, the Nasdaq is up 8.04 points or 0.1 percent at 7,596.36 and the S&P 500 is up 6.97 points or 0.3 percent at 2,789.99.

The strength on Wall Street comes following the release of a Labor Department report showing a modest increase in consumer prices in the month of February.

The Labor Department said its consumer price index rose by 0.2 percent in February after climbing by 0.5 percent in January. Economists had expected consumer prices to rise by 0.2 percent.

Core consumer prices, which exclude food and energy prices, also edged up by 0.2 percent in February following a 0.3 percent increase in January. The uptick in core prices also matched expectations.

Traders are also digesting news that President Donald Trump plans to replace Secretary of State Rex Tillerson with CIA Director Mike Pompeo.

Housing, computer hardware and transportation stocks are seeing considerable strength on the day, while most of the other major sectors are showing more modest moves.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index advanced by 0.7 percent, while China's Shanghai Composite Index fell by 0.5 percent.

Meanwhile, the major European markets have moved to the downside on the day. While the French CAC 40 Index is just below the unchanged line, the U.K.'s FTSE 100 Index and German DAX Index are down by 0.5 percent and 0.6 percent, respectively.

In the bond market, treasuries have pulled back near the unchanged line after seeing initial strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 2.863 percent.

by RTT Staff Writer

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