Stocks have moved mostly higher during trading on Monday, regaining some ground after falling sharply in recent weeks. The markets have benefited from bargain hunting, although stocks remain well off their recent highs.
The major averages have moved roughly sideways in recent trading, hovering firmly in positive territory. The Dow is up 85.90 points or 0.7 percent to 12,455.28, the Nasdaq is up 37.78 points or 1.4 percent at 2,816.57 and the S&P 500 is up 12.52 points or 1 percent at 1,307.74.
The strength that has emerged on Wall Street comes as traders are picking up stocks at reduced levels following the recent downward trend, which pulled the major averages down to four-month closing lows on Friday.
Nonetheless, buying interest remains relatively subdued amid lingering concerns about the financial situation in Europe. A lack of major U.S. economic data is also keeping some traders on the sidelines.
While reports on home sales, durable goods orders, and consumer sentiment are likely to be in focus later this week along with earnings news from Hewlett-Packard (HPQ), Dell (DELL), and Best Buy (BBY) trading activity may remain light.
With earnings season drawing to a close, some traders are likely to take the opportunity to step away from the markets and go on an early summer vacation.
Among individual stocks, American Eagle Outfitters (AEO) is posting a strong gain after the apparel retailer announced plans to exit its children's business 77kids. The company also said its chief financial officer Joan Hilson is stepping down.
Shares of Yahoo (YHOO) are nearly unchanged after the online media giant announced that it is selling up to half of its stake in Alibaba back to the Chinese e-commerce company for about $7.1 billion.
Meanwhile, Lowe's (LOW) is posting a steep loss after the home improvement retailer reported better than expected first quarter results but lowered its full year earnings guidance.
Shares of Facebook (FB) have also come under pressure, with the social media giant tumbling by 11.6 percent following its glitch-plagued debut on Friday.
Sector News
Gold stocks are turning in some of the market's best performances in mid-day trading, with the NYSE Arca Gold Bugs Index up by 2.3 percent. With the gain, the index is climbing further off the two-year low set last Tuesday.
The strength among gold stocks comes despite a decrease by the price of the precious metal. Gold for June delivery is down $1.20 at $1,590.70 an ounce, although it is well off its lows.
Significant strength is also visible among oil service stocks, which are moving higher along with the price of crude oil. With crude for June delivery climbing $0.64 to $92.12 a barrel, the Philadelphia Oil Service Index is up by 2.5 percent.
Computer hardware stocks have also shown a strong move to the upside on the day, driving the NYSE Computer Hardware Index up by 2.4 percent. Steel, health insurance, networking, and chemical stocks are also posting notable gains.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index crept up by 0.3 percent, while Hong Kong's Hang Seng Index ended the day down by 0.2 percent.
Meanwhile, the major European markets all moved to the upside on the day. While the German DAX Index advanced by 1 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index rose by 0.7 percent and 0.6 percent, respectively.
In the bond market, treasuries are seeing modest weakness after rising sharply in recent sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.9 basis points at 1.731 percent.
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