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Stocks Close Mostly Higher Following Recent Weakness - U.S. Commentary


After an initial move to the downside, stocks turned positive over the course of the trading session on Tuesday. The major averages bounced off their early lows and ended the day in positive territory.

The Dow rose 113.99 points or 0.4 percent to 25,971.06, the Nasdaq climbed 48.31 points or 0.6 percent to 7,972.47 and the S&P 500 advanced 10.76 points or 0.4 percent to 2,887.89.

The strength on Wall Street came as traders looked to pick up stocks at somewhat reduced levels following recent weakness.

Trading activity remained somewhat subdued, however, as a lack of major U.S. economic data kept some traders on the sidelines.

In the coming days, trading may be impacted by reaction to reports on producer and consumer price inflation, retail sales and industrial production as well as the Federal Reserve's Beige Book.

Tobacco stocks turned in some of the market's best performances, resulting in a 4.2 percent jump by the NYSE Arca Tobacco Index.

Significant strength also emerged among oil service stocks, as reflected by the 2 percent gain posted by the Philadelphia Oil Service Index.

Natural gas, retail, and telecom stocks also saw notable strength on the day, while steel stocks showed a considerable move to the downside.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index jumped by 1.3 percent, while Hong Kong's Hang Seng Index dropped by 0.7 percent.

The major European markets also ended the day mixed. While the French CAC 40 Index climbed by 0.3 percent, the German DAX Index and the U.K.'s FTSE 100 Index both edged down by 0.1 percent.

In the bond market, treasuries moved to the downside after ending the previous session roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 4 basis points to 2.977 percent.

Trading on Wednesday may be impacted by reaction to a report on producer price inflation as well as the Federal Reserve's Beige Book.

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