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Stocks Rebounding Following Yesterday's Sharp Pullback - U.S. Commentary

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Following the sharp pullback seen in the previous session, stocks have moved back to the upside in morning trading on Wednesday. The major averages have climbed into positive territory but remain well off last Friday's highs.

In recent trading, the major averages have pulled back off their best levels of the day. The Dow remains up 170.73 points or 0.7 percent at 24,5757.21, the Nasdaq is up 31.95 points or 0.5 percent at 7,052.30 and the S&P 500 is up 9.96 points or 0.4 percent at 2,642.86.

The rebound on Wall Street comes as upbeat earnings news from several big-name companies has overshadowed concerns about the global economic outlook.

Consumer products giant Procter & Gamble (PG) is seeing significant strength after reporting better than expected fiscal second quarter results.

Shares of United Technologies (UTX) have also moved notably higher after the industrial conglomerate reported fourth quarter results that exceeded analyst estimates on both the top and bottom lines.

The earnings news has offset concerns about U.S.-China trade talks raised by reports the U.S. rejected China's offer to hold a preparatory meeting in Washington ahead of next week's high-level trade talks.

White House economic adviser Larry Kudlow told CNBC the two sides were on track to have "very, very important" high-level talks at the end of the month that will be "determinative."

Overall trading activity remains somewhat subdued, however, as a lack of major U.S. economic data is keeping some traders on the sidelines.

Computer hardware stocks have shown a strong move to the upside in morning trading, driving the NYSE Arca Computer Hardware Index up by 1.7 percent.

Tech giant IBM Corp. (IBM) is posting a standout gain after reporting fourth quarter results that beat estimates and providing upbeat guidance for 2019.

Networking, housing and biotechnology stocks are also seeing some 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 lackluster performance during trading on Wednesday. Japan's Nikkei 225 Index edged down by 0.2 percent, while China's Shanghai Composite Index inched up by 0.1 percent.

The major European markets have also turned mixed on the day. While the U.K.'s FTSE 100 Index is down by 0.4 percent, the German DAX Index is up by 0.3 percent and the French CAC 40 Index is up by 0.5 percent.

In the bond market, treasuries are pulling back following the rebound seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up 3.2 basis points at 2.762 percent.

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