(RTTNews) - Stocks are giving back some ground in early afternoon trading on Wednesday after showing a notable upward move over the course of the morning. The major averages are pulling back well off their highs, although they currently remain in positive territory.

Upbeat economic data contributed to the strength seen earlier in the session, as traders reacted to a Labor Department report showing that weekly jobless claims fell below 500,000 as well as a Commerce Department report showing strong new home sales growth in October.

Buying interest remained somewhat subdued, however, with many traders already away from their desks ahead of the Thanksgiving Day holiday. Subsequently, some traders have looked to cash in on the gains, although selling pressure has also been relatively tame.

Trading activity is likely to continue to tail off in afternoon trading, as some traders look to get a head start on the holiday. The limited volume could contribute to increased volatility.

The major averages have ticked back to the upside in the past few minutes, although they remain well off their best levels of the day. The Dow is currently up 26.15 at 10,459.86, the Nasdaq is up 5.46 at 2,174.64 and the S&P 500 is up 3.16 at 1,108.81.

Sector News
While gold stocks continue to turn in some of the best performances, significant strength has also emerged among airline stocks. The strength in the airline sector is reflected by the 1.4 percent gain currently being shown by the NYSE Arca Airline Index.

US Airways (LCC) is turning in one of the sector's best performances, with the airline currently up 6 percent after reaching its best intraday level in a month. The gain comes as traders continue to react to the company's liquidity improvement program announced on Tuesday.

Steel and natural gas stocks have also shown strong moves to the upside over the course of the trading session, with the NYSE Arca Steel Index and the NYSE Arca Natural Gas Index currently up 1.6 percent and 1.2 percent, respectively.

Notable strength is also visible among electronic storage, telecom, chemical, and retail stocks, although buying interest remains relatively subdued. On the other hand, banking stocks are moving to the downside, contributing to the pullback by the major averages.

Stocks In The News

Incyte Corp. (INCY) is turning in a strong performance in early afternoon trading, with the drug discovery and development company currently up 10.4 percent. At its high for the session, Incyte was at its best intraday level in over a year.

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