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U.S. Stocks Pull Back Off Early Highs But Remain Mostly Positive

wallstreet oct16 19jan21 lt

After showing a strong move to the upside at the start of trading on Tuesday, stocks have given back some ground over the course of the morning. The major averages have pulled back off their highs of the session but remain in positive territory.

Currently, the major averages are holding on to gains. The Dow is up 122.79 points or 0.4 percent at 30,937.05, the Nasdaq is up 95.39 points or 0.7 percent at 13,093.89 and the S&P 500 is up 19.62 points or 0.5 percent at 3,787.87.

The initial strength on Wall Street came following the losses seen last week, when the Dow slid by 0.9 percent and the Nasdaq and the S&P 500 both slumped by 1.5 percent.

The major averages saw notable weakness last Friday after turning lower over the course of the session on Thursday, with the Dow and the Nasdaq pulling back after reaching record intraday highs.

Early buying interest was generated in reaction to earnings news from companies such as Goldman Sachs (GS) and Bank of America (BAC), although both the financial giants have moved lower over the course of the morning.

Netflix (NFLX), Procter & Gamble (PG), IBM (IBM), and Intel (INTC) are among some of the other big-name companies scheduled to release their quarterly results this week.

Traders are also keeping an eye on remarks from Treasury Secretary nominee Janet Yellen, who is testifying before the Senate Finance Committee.

In prepared remarks, Yellen called for additional stimulus to address the impact of the ongoing coronavirus pandemic, arguing the government needs to "act big."

Yellen acknowledged the mounting national debt facing the incoming administration but claimed the benefits of another relief package will far outweigh the costs.

Semiconductor stocks have shown a strong move back to the upside after coming under pressure in the previous session, with the Philadelphia Semiconductor Index jumping by 2 percent.

Considerable strength is also visible among oil stocks, which are moving higher along with the price of crude oil. With crude for February delivery rising $0.47 to $52.83 the NYSE Arca Oil Index is up by 2.4 percent.

Biotechnology, pharmaceutical and housing stocks are also seeing notable strength on the day, while weakness has emerged among natural gas stocks.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index jumped by 1.4 percent, while Hong Kong's Hang Seng Index soared by 2.7 percent.

Meanwhile, the major European markets have shown modest moves to the downside on the day. While the U.K.'s FTSE 100 Index has edged down by 0.1 percent, the German DAX Index is down by 0.2 percent and the French CAC 40 Index is down by 0.3 percent.

In the bond market, treasuries have moved modestly lower following the advance seen last Friday. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.7 basis points at 1.114 percent.

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