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U.S. Stocks Hovering In Positive Territory In Mid-Day Trading

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Stocks have pulled back off their best levels of the day but remain mostly positive in mid-day trading on Tuesday. The major averages are holding on to gains after showing a strong move to the upside at the start of trading.

Currently, the major averages are hovering firmly in positive territory. The Dow is up 128.23 points or 0.4 percent at 30,942.49, the Nasdaq is up 115.14 points or 0.9 percent at 13,113.64 and the S&P 500 is up 21.88 points or 0.6 percent at 3,790.13.

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.

Sector News

Oil stocks continue to see substantial strength in mid-day trading, resulting in a 2.5 percent jump by the NYSE Arca Oil Index.

The rally by oil stocks comes amid an increase by the price of crude oil, with crude for February delivery climbing $0.55 to $52.91 an ounce.

Significant strength also remains visible among semiconductor stocks, as reflected by the 2.2 percent jump by the Philadelphia Semiconductor Index.

Biotechnology, housing and tobacco stocks are also seeing notable strength, while most of the other major sectors are showing more modest moves.

Other Markets

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 showed modest moves to the downside on the day. While the U.K.'s FTSE 100 Index edged down by 0.1 percent, the German DAX Index dipped by 0.2 percent and the French CAC 40 Index fell by 0.3 percent.

In the bond market, treasuries have bounced back near the unchanged line after seeing early weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 1.099 percent.

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