Stocks are seeing modest strength in early trading on Monday, partly offsetting the steep losses posted in recent sessions. The major averages have moved to the upside, bouncing off the four-month closing lows set last Friday.
Bargain hunting is contributing to the early strength on Wall Street, with some traders picking up stocks at reduced levels following the recent weakness. Nonetheless, buying interest has remained subdued amid lingering concerns about the financial situation in Europe.
Resource stocks are turning in some of the best performances in early trading, with considerable strength visible among gold stocks. The NYSE Arca Gold Bugs Index is up by 2 percent, climbing further off the two-year low set last Tuesday.
Steel, oil service, and natural gas stocks are also seeing significant strength, regaining some ground after falling sharply in recent weeks.
Outside of the resource sector, railroad, chemical, and biotechnology stocks are also posting strong gains. Meanwhile, moderate weakness has emerged among housing stocks.
The major averages have pulled back off their highs for the young session but currently remain positive. The Dow is up 28.61 points or 0.2 percent at 12,397.99, the Nasdaq is up 2.24 points or 0.1 percent at 2,781.03 and the S&P 500 is up 3.57 points or 0.3 percent at 1,298.79.
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