U.S. Stocks Give Back Ground After Initial Spike But Remain Sharply Higher

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After moving sharply higher 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 well off their highs of the session but remain firmly positive.

Currently, the major averages are holding on to strong gains. The Dow is up 423.16 points or 1.4 percent at 30,608.98, the Nasdaq is up 149.69 points or 1.4 percent at 10,825.49 and the S&P 500 is up 51.73 points or 1.4 percent at 3,729.68.

The initial strength on Wall Street partly reflected a positive reaction to upbeat earnings news from companies like Goldman Sachs (GS) and Johnson & Johnson (JNJ)

Shares of Goldman Sachs have jumped by 3.9 percent after the financial giant reported third quarter results that beat analyst estimates on both the top and bottom lines.

Johnson & Johnson has shown a more modest move to the upside after the healthcare giant also reported better than expected third quarter results.

The upbeat results from Goldman Sachs and J&J have helped ease concerns about the strength of the earnings season.

Netflix (NFLX) and United Airlines (UAL) are among the companies due to report their quarterly results after the close of today's trading.

Big-name companies like Procter & Gamble (PG), IBM Corp. (IBM), Tesla (TSLA), AT&T (T) and American Express (AXP) are also due to report their results in the coming days.

Traders may also have continued to hunt for bargains, as the major averages remain at relatively reduced levels even after yesterday's rally.

Buying interest has waned over the course of the morning, however, as concerns about the outlook for interest rates and the global economy continue to hang over the markets.

In U.S. economic news, the Federal Reserve released a report showing industrial production increased by more than expected in the month of September.

The Fed said industrial production rose by 0.4 percent in September after edging down by a revised 0.1 percent in August.

Economists had expected industrial production to inch up by 0.1 percent compared to the 0.2 percent dip originally reported for the previous month.

Chemical stocks are seeing significant strength in morning trading, resulting in a 2.2 percent surge by the S&P Chemical Sector Index.

Considerable strength is also visible among housing stocks, as reflected by the 2.2 percent jump by the Philadelphia Housing Sector Index.

The rally by housing stocks comes even though the National Association of Home Builders released a report showing a continued deterioration in homebuilder confidence in the month of October.

Networking stocks are also turning in another strong performance on the day, driving the NYSE Arca Networking Index up by 2.1 percent.

Tobacco, retail and airline stocks are also seeing notable strength, moving higher along with most of the other major sectors.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Tuesday. Japan's Nikkei 225 Index jumped by 1.4 percent and Hong Kong's Hang Seng Index surged by 1.8 percent, although China's Shanghai Composite Index bucked the uptrend and edged down by 0.1 percent.

The major European markets have also moved to the upside on the day. While the German DAX Index is up by 1.4 percent, the French CAC 40 Index is up by 0.9 percent and the U.K.'s FTSE 100 Index is up by 0.6 percent.

In the bond market, treasuries have moved moderately higher after ending the previous session little changed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.9 basis points at 3.986 percent.

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