Positive Reaction To Earnings Leads To Strength On Wall Street - U.S. Commentary

(RTTNews) - With traders reacting positively to the latest earnings news, stocks have moved mostly higher in early trading on Wednesday. The major averages have all climbed into positive territory after ending the previous session mixed.

Currently, the major averages are hovering firmly in positive territory. The Dow is up 94.29 points or 0.5 percent at 18,130.99, the Nasdaq is up 21.41 points or 0.4 percent at 4,998.70 and the S&P 500 is up 11.06 points or 0.5 percent at 2,106.90.

A positive reaction to earnings news from Intel (INTC) is contributing to the strength on Wall Street, with the semiconductor giant surging up by 3.8 percent.

After the close of trading on Tuesday, Intel reported first quarter earnings that came in line with analyst estimates, although its revenues came in below expectations.

While Intel also provided lackluster revenue guidance for the second quarter, it forecast better than expected profit margins for the quarter.

Delta Air Lines (DAL) is also moving notably higher after reporting first quarter earnings that came in slightly above expectations.

On the other hand, financial giant Bank of America (BAC) has moved to the downside even after reporting a first quarter profit compared to a year-ago loss.

Traders are also digesting a mixed batch of economic data, including reports showing a bigger than expected rebound in homebuilder confidence and a bigger than expected drop in industrial production.

The National Association of Home Builders recently released a report showing a notable rebound in homebuilder confidence in the month of April.

The report said the NAHB/Wells Fargo Housing Market Index jumped to 56 in April from a nine-month low of 52 in March. Economists had been expecting the index to climb to 55.

Meanwhile, the Federal Reserve released a report showing that industrial production fell by 0.6 percent in March after inching up by 0.1 percent in February. Economists had expected production to drop by 0.3 percent.

The bigger than expected decrease in production was partly due to a steep drop in utilities output, which pulled back after surging higher in the previous month amid unseasonably cold temperatures.

A separate report from the New York Fed showed an unexpected contraction in regional manufacturing activity in the month of April.

Nonetheless, after seeing considerable strength in the previous session, energy stocks are once again turning in a strong performance in early trading.

The strength in the energy sector comes amid an increase by price of crude oil, with crude for May delivery climbing $0.82 to $54.11 a barrel.

Gold, computer hardware, and semiconductor stocks are also seeing early strength, while most of the other major sectors are showing more modest moves.

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Wednesday. Japan's Nikkei 225 Index edged down by 0.2 percent, while Hong Kong's Hang Seng Index inched up by 0.2 percent.

Meanwhile, the major European markets all moved to the upside on the day. While the French CAC 40 Index has advanced by 0.9 percent, the German DAX Index and the U.K.'s FTSE 100 Index are both up by 0.4 percent.

In the bond market, treasuries have moved moderately higher, adding to the gains posted in the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.3 basis points at 1.881 percent.