Major Averages Posting Modest Gains In Morning Trading – U.S. Commentary
Stocks are seeing modest strength in morning trading on Tuesday, extending the upward move seen over the past few sessions. Buying interest has remained relatively subdued, however, limiting the upside for the major averages.
The tech-heavy Nasdaq briefly dipped into negative territory but is currently up 11.67 points or 0.2 percent at 7,579.35. The Dow is up 73.27 points or 0.3 percent at 24,380.45 and the S&P 500 is up 7.99 points or 0.3 percent at 2,734.70.
The strength on Wall Street partly reflects recent upward momentum, with the major averages moving higher for the fourth consecutive session.
The recent advance by stocks comes despite lingering concerns about a global trade war as tariffs on billions of dollars worth of U.S. and Chinese goods are set to take effect later this week.
Signs of continued strength in the U.S. economy despite the ongoing trade disputes may be inspiring traders to pick up stocks.
Shortly after the start of trading, the Commerce Department released a report showing an unexpected rebound in new orders for manufactured goods in the month of May.
The Commerce Department said factory orders climbed by 0.4 percent in May after falling by a revised 0.4 percent in April.
Economists had expected orders to come in unchanged compared to the 0.8 percent decrease originally reported for the previous month.
Trading activity has remain relatively light, however, as the markets are due to close earlier than normal ahead of the July 4th holiday.
Following the holiday, traders are likely to keep a close eye on the minutes of the latest Federal Reserve meeting as well as the Labor Department’s monthly jobs report.
Gold stocks have shown a significant move to the upside on the day, driving the NYSE Arca Gold Bugs Index up by 2.7 percent.
The strength among gold stocks comes amid a notably rebound by the price of the precious metal, with gold for August delivery jumping $13.40 to $1,255.10 an ounce.
Energy, biotechnology, and pharmaceutical stocks are also seeing considerable strength in morning trading, while most of the other major sectors are showing more modest moves.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index edged down by 0.1 percent, while China’s Shanghai Composite Index rose by 0.4 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index is up by 0.9 percent, the French CAC 40 Index is up by 0.8 percent and the U.K.’s FTSE 100 Index is up by 0.7 percent.
In the bond market, treasuries have turned higher over the course of the morning after seeing initial weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.2 basis points at 2.844 percent.
by RTTNews Staff Writer
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