With traders reacting positively to some upbeat economic data, stocks have moved sharply higher in early trading on Monday. The major averages have climbed firmly into positive territory, recovering from the notable move to the downside that was seen last week.
The early strength on Wall Street comes on the heels of the release of a pair of upbeat economic reports, including a report from the National Association of Home Builders showing that its reading on homebuilder confidence jumped to a seven-year high in June.
Traders also seem to be expressing some optimism about the outcome of the Federal Reserve's two-day monetary policy meeting that ends on Wednesday.
While the Fed is not expected to announce an immediate change in policy, traders will be looking for any signals reading when the central bank will scale back its stimulus program.
Housing stocks have shown a strong upward move on the heels of the NAHB report, with the Philadelphia Housing Sector Index surging up by 2.5 percent. The gain is lifting the index further off the more than one-month closing low it set last Thursday.
Semiconductor, brokerage, and natural gas stocks have also moved sharply higher in early trading, moving to the upside along with most of the other major sectors.
The major averages are currently posting strong gains, near their highs for the young session. The Dow is up 164.12 points or 1.1 percent at 15,234.30, the Nasdaq is up 40.11 points or 1.2 percent at 3,363.66 and the S&P 500 is up 16.72 points or 1 percent at 1,643.45.
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