After moving sharply higher at the open, stocks remain mostly positive in mid-day trading on Thursday. The strong gains on the day have partly offset the sharp pullback that was seen over the course of the previous session.
The major averages have pulled back off their best levels of the day but currently remain firmly positive. The Dow is up 150.56 points or 0.9 percent at 17,665.98, the Nasdaq is up 47.26 points or 1 percent at 4,957.02 and the S&P 500 is up 16.46 points or 0.8 percent at 2,063.14.
The strength on Wall Street is partly in reaction to a substantial rebound by Chinese stocks, with the Shanghai Composite Index surging up by 5.8 percent as authorities unveiled fresh support measures.
In a bid to curb crashing prices, China's securities regulator banned senior management and investors who own stakes in businesses exceeding 5 percent from selling their shares for next six months.
China's central bank also said it would provide sufficient liquidity to China Securities Finance Corp., the state-backed margin finance company.
Additionally, the China Banking Regulatory Commission said it would encourage banks to support companies' share buybacks by offering them collateralized loans.
Buying interest was also generated by optimism about a deal between Greece and its creditors after the debt-laden nation promised to implement pension and tax reforms to win fresh aid.
Greek Prime Minister Alexis Tsipras told European parliament that he would submit a detailed reform plan to the Eurozone later today.
Among individual stocks, shares of Walgreens Boots Alliance (WBA) have moved notably move higher after the drugstore operator reported better than expected third quarter earnings. The company also raised its full-year guidance and its quarterly dividend.
Aluminum giant Alcoa (AA) is also turning in a strong performance even though the company reported second quarter earnings that came in below analyst estimates.
On the other hand, shares of WD-40 (WDFC) have come under pressure after the maintenance and cleaning products maker reported weaker than expected third quarter results and cut its full-year guidance.
Sector News
Oil service stocks have shown a strong move back to the upside on the day after falling sharply in the previous session. The Philadelphia Oil Service Index has surged up by 1.7 percent, bouncing off its worst closing level in well over three months.
The rebound by oil service stocks comes amid a sharp increase by the price of crude oil, with crude for August delivery jumping $1.16 to $52.81 a barrel.
Significant strength is also visible among airline stocks, as reflected by the 1.6 percent gain being posted by the NYSE Arca Airline Index. The gain by the index comes after it ended Wednesday's trading at an eight-month closing low.
Biotechnology stocks are also turning in a strong performance following yesterday's sell-off, with the NYSE Arca Biotechnology Index climbing by 1.6 percent. Novavax (NVAX) has helped to lead the sector higher, soaring by 7.6 percent.
Steel, brokerage, trucking, and banking stocks are also moving notably higher on the day, while utilities stocks are bucking the uptrend.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region rebounded on Thursday after seeing early weakness. Japan's Nikkei 225 Index advanced by 0.6 percent, while Hong Kong's Hang Seng Index surged up by 3.7 percent.
The major European markets also showed strong moves to the upside on the day. While the U.K.'s FTSE 100 Index jumped by 1.4 percent, the German DAX Index and the French CAC 40 Index soared by 2.3 percent and 2.6 percent, respectively.
In the bond market, treasuries are giving back ground after moving sharply higher over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 6.1 basis points at 2.267 percent.
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