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Stocks Seeing Further Upside After Early Advance - U.S. Commentary

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After moving moderately higher early in the session, stocks have seen some further upside over the course of the trading day on Tuesday. With the advance, the major averages have reached new six-month intraday highs.

Currently, the major averages are hovering near their best levels of the day. The Dow is up 173.40 points or 0.7 percent at 26,684.45, the Nasdaq is up 99.37 points or 1.2 percent at 8,114.63 and the S&P 500 is up 27.50 points or 1 percent at 2,935.47.

The strength on Wall Street reflects a positive 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 on the day 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 was also 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.

Sector News

Biotechnology stocks have moved sharply higher over the course of the trading session, driving the NYSE Arca Biotechnology Index up by 2 percent.

Bargain hunting may be contributing to the strength in the sector after the index ended Monday's trading at its lowest closing level in well over three months.

Significant strength has also emerged among healthcare stocks, as reflected by the 1.8 percent jump by the Dow Jones U.S. Health Care Index.

Retail, pharmaceutical, and housing stocks have also moved notably higher, reflecting the broad based buying interest that has materialized on Wall Street.

Other Markets

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 also moved to the upside on the day. While the U.K.'s FTSE 100 Index advanced by 0.9 percent, the French CAC 40 Index and the German DAX Index 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 1.8 basis points at 2.572 percent.

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