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Upbeat Earnings News Leads To Early Strength On Wall Street - U.S. Commentary

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Following the lackluster performance seen in the previous session, stocks have moved mostly higher in morning trading on Tuesday. The major averages have all climbed into positive territory after ending Monday's trading mixed.

Currently, the major averages are off their best levels but holding on to gains. The Dow is up 41.17 points or 0.2 percent at 26,552.22, the Nasdaq is up 50.88 points or 0.6 percent at 8,066.14 and the S&P 500 is up 10.90 points or 0.4 percent at 2,918.87.

Early buying interest has been generated in reaction to upbeat earnings news from a number of big-name companies, including Dow components United Technologies (UTX) and Coca-Cola (KO).

United Technologies and Coca-Cola are both moving notably higher in morning trading after reporting better than expected first quarter results.

Shares of Twitter (TWTR) are also seeing significant strength after the social media giant reported better than expected first quarter earnings, revenue, and user growth.

Toy maker Hasbro (HAS) has also moved sharply higher unexpectedly turning a profit in the first quarter on better than expected revenues.

Meanwhile, Procter & Gamble (PG) and Verizon (VZ) have both moved to the downside despite reporting first quarter earnings that exceeded analyst estimates.

eBay (EBAY), Snap (SNAP), TD Ameritrade (AMTD), and Texas Instruments (TXN) are among the companies scheduled to release their quarterly results after the close of today's trading.

Positive sentiment may also have been generated by a Commerce Department report showing new home sales in the U.S. unexpectedly jumped to their highest level in well over a year in the month of March.

The Commerce Department said new home sales surged up by 4.5 percent to an annual rate of 692,000 in March after soaring by 5.9 percent to a revised rate of 662,000 in February.

The continued increase surprised economists, who had expected new home sales to drop by 2.5 percent to a rate of 650,000 from the 667,000 originally reported for the previous month.

With the unexpected spike, new home sales reached their highest annual rate since hitting 712,000 in November of 2017.

Despite the advance by the broader markets, most of the major sectors are showing relatively modest moves in morning trading.

Pharmaceutical and software stocks are seeing some strength on the day, while weakness has emerged among gold and telecom stocks.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher, although China's Shanghai Composite Index bucked the uptrend and fell by 0.5 percent. Japan's Nikkei 225 Index edged up by 0.2 percent and Australia's S&P/ASX 200 Index jumped by 1 percent.

The major European markets have also moved to the upside on the day. While the U.K.'s FTSE 100 Index has climbed by 0.7 percent, the German DAX Index and the French CAC 40 Index have edged up by 0.2 percent and 0.1 percent, respectively.

In the bond market, treasuries are rebound following the pullback seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.1 basis points at 2.569 percent.

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