Major Averages Holding Most Of Early Gains - U.S. Commentary

(RTTNews) - Stocks continue to show modest gains in mid-afternoon trading on Monday. Wall Street was able to extend Friday's advance on hopes that geopolitical tensions are easing and on dovish comments from a high-ranking Federal Reserve official.

The major averages advanced through much of the morning and have held most of their gains into the mid-afternoon.

The Dow Jones Industrial Average is climbing 53.40 points, or 0.32%, to 16,607.33. The Nasdaq is higher by 38.01 points, or 0.87%, to 4,408.91. The S&P 500 has advanced 10.55 points, or 0.55%, to 1,942.14.

Monday's advance has added to a gain posted on Friday, when markets moved sharply higher on bargain hunting after losses posted in the previous few sessions.

Remarks from a top Fed official helped spur Monday's early gains. U.S. Federal Reserve Vice Chair Stanley Fischer said that U.S. and global recoveries have been "disappointing" so far and the latest recession may have permanently hampered economic potential. The remarks suggested that the Fed's removal of stimulus may happen more slowly than many had thought.

In corporate news, online travel agency Priceline Group Inc. (PCLN) reported increased profit for the second quarter that topped estimates. Shares of Priceline are off their early intraday highs, but still posting a gain of 2.7%.

Meanwhile Dean Foods Co. (DF) is moving the opposite direction on earnings news. The milk producer reported a loss for the second quarter that narrowed from last year, reflecting higher sales and lower expenses. However, the company reported an adjusted loss for the quarter as well, while analysts' expected the company to report an adjusted profit. Higher raw milk costs weighed on the bottom line.

Shares of Dean Foods are down, falling $1.00, or 6.3%, to $14.80.

There were no major economic reports released today.

The sluggish release schedule continues tomorrow, with no top-tier economic figures set to be announced. However, a couple lower-profile releases are due out. The NFIB Small Business Optimism Index, put out by the National Federation of Independent Business, provide a look at confidence among small business owners. Meanwhile, the Labor Department's Job Openings and Labor Turnover Survey is due out today.

The pace of economic releases picks up on Wednesday, with the release of statistics on retail sales. Data on jobless claims, producer prices and industrial production are due out later in the week.

Looking overseas, European stocks surged higher for a second straight session amid hopes that conflicts in Ukraine and the Middle East can be contained. Germany led the advance among the region's major averages, with the DAX index rising by 1.9%. France's CAC 40 index climbed 1.2%, while the U.K.'s FTSE 100 index advanced 1%.

Asian stocks posted gains as well. China's Shanghai Composite index rose 1.4% and Japan's Nikkei rebounded from recent losses, jumping 2.4%.