Major Averages Posting Strong Gains In Early Trading

(RTTNews) - Stocks once again showed a strong move to the upside at the start of trading on Wednesday, mirroring the performance seen in the previous session. The major averages are firmly positive, although it remains to be seen if they will be able to hold on to the gains.

The initial strength on Wall Street came as traders looked to pick up stocks at reduced levels following the downturn seen over the course of the trading day on Tuesday.

The pullback on the day extended the recent sell-off on Wall Street, with the Dow falling to its lowest levels since February of last year, while the Nasdaq and the S&P 500 set new ten-month lows.

In addition to bargain hunting, the markets have also benefited from a report from the Commerce Department showing that durable goods orders unexpectedly increased in July.

Oil service stocks have moved sharply higher in early trading, driving the Philadelphia Oil Service Index up by 4 percent. The strength in the sector comes despite a modest decrease by the price of crude oil.

Electronic storage, telecom, railroad and retail stocks are also seeing considerable strength, moving higher along with most of the other major sectors.

The major averages have given back some ground since the open but are currently holding on to strong gains. The Dow is up 255.37 points or 1.6 percent at 15,921.81, the Nasdaq is up 78.91 points or 1.8 percent at 4,585.40 and the S&P 500 is up 29.31 points or 1.6 percent at 1,896.92.