Major Averages Show Strong Upward Move In Early Trading

(RTTNews) - Stocks have moved mostly higher in early trading on Wednesday, regaining some ground after falling sharply over the past few sessions. The major averages have climbed firmly into positive territory but remain well off their recent highs.

The early strength on Wall Street is partly due to the release of a report from payroll processor ADP showing stronger than expected private sector job in the month of December.

ADP said the private sector added 241,000 jobs in December following an upwardly revised increase of 227,000 jobs in November. Economists had expected an increase of about 235,000 jobs.

Buying interest has also been generated by a rebound by the price of crude oil, with crude for February delivery climbing $1.21 to $49.14 a barrel after tumbling to a new five-year low on Tuesday.

Oil stocks have subsequently shown a strong move to the upside, driving the NYSE Arca Oil & Gas Index up by 1.7 percent.

Considerable strength has also emerged among biotechnology stocks, as reflected by the 1.6 percent gain being posted by the NYSE Arca Biotechnology Index.

Retail, healthcare, and housing stocks are also seeing early strength, with J.C. Penney (JCP) leading the retail sector higher after reporting strong holiday sales. In recent trading, the major averages have pulled back off their highs for the session, but they remain firmly positive. The Dow is up 135.06 points or 0.8 percent at 17,506.70, the Nasdaq is up 36.08 points or 0.8 percent at 4,628.81 and the S&P 500 is up 16.49 points or 0.8 percent at 2,019.10.