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U.S. Stocks Move Back To The Upside In Morning Trading

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Stocks have moved moderately higher in morning trading on Monday, rebounding following the pullback seen over the course of the previous session. The major averages have all moved to the upside but remain off last Friday's record intraday highs.

Currently, the major averages are hovering in positive territory. The Dow is up 48.80 points or 0.2 percent at 28,872.57, the Nasdaq is up 36.73 points or 0.4 percent at 9,215.59 and the S&P 500 is up 10.35 points or 0.3 percent at 3,275.70.

The strength on Wall Street comes amid optimism about the phase one U.S.-China trade deal due to be signed later this week.

Chinese Vice Premier Liu He is scheduled to visit Washington to sign the deal, which is said to include reduced tariffs on Chinese goods in exchange for increased Chinese purchases of U.S. agricultural products.

In an interview with Fox News on Sunday, Treasury Secretary Steven Mnuchin said the agreement calls for China to purchase $40 to $50 billion worth of U.S. agricultural products annually.

Mnuchin described the agreement as "very, very extensive," although the deal will not completely resolve the trade dispute between the U.S. and China.

Buying interest has remained somewhat subdued, however, as traders look ahead to earnings news from financial giants Citigroup (C), JPMorgan Chase (JPM), Bank of America (BAC) and Goldman Sachs (GS) in the coming days.

Reports on consumer and producer price inflation, retail sales, homebuilder confidence, and industrial production may also attract attention later this week.

Steel stocks are turning in some of the market's best performances amid optimism about the impact of the U.S.-China trade deal, with the NYSE Arca Steel Index climbing by 1.5 percent.

Significant strength has also emerged among semiconductor stocks, as reflected by the 1.3 percent gain being posted by the Philadelphia Semiconductor Index.

On the other hand, biotechnology stocks have shown a substantial move to the downside, dragging the NYSE Arca Biotechnology Index down by 2.4 percent.

Gold and energy stocks have also moved notably lower, with decreases by the prices of gold and crude oil weighing on the sectors.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday, with the Japanese markets closed for a holiday. China's Shanghai Composite Index climbed by 0.8 percent, while South Korea's Kospi jumped by 1 percent.

Meanwhile, the major European markets have turned mixed on the day. While the U.K.'s FTSE 100 Index is up by 0.2 percent, the French CAC 40 Index is down by 0.2 percent and the German DAX Index is down by 0.3 percent.

In the bond market, treasuries are giving back ground after moving higher over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.8 basis points at 1.853 percent.

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