Stocks Extending Recent Upward Trend In Early Trading - U.S. Commentary

(RTTNews) - After ending the previous session mostly higher, stocks are seeing some further upside in early trading on Tuesday. The major averages moved notably higher at the open, although buying interest has remained somewhat subdued.

While the Nasdaq has pulled back well off its high for the young session, the Dow and the S&P 500 remain firmly positive. The Nasdaq is up 8.31 points or 0.2 percent at 3,493.14, while the Dow is up 71.51 points or 0.5 percent at 15,296.20 and the S&P 500 is up 7.92 points or 0.5 percent at 1,648.38.

The early strength on Wall Street comes on the heels of the release of quarterly results from aluminum giant Alcoa (AA), which kicked off the earnings season after the close of trading on Monday.

Alcoa reported second quarter earnings and revenues that exceeded analyst estimates and said it continues to project 7 percent global aluminum demand growth in 2013.

While shares of Alcoa have moved lower on the news, the company's results have generated some optimism about the global economy as well as the outlook for the remainder of earnings season.

Positive sentiment was also generated by news that eurozone finance ministers agreed to release the next loan installment for Greece in two tranches.

Nonetheless, trading activity on Wall Street has remained somewhat subdued amid another quiet day on the U.S. economic front.

Traders seem reluctant to make any significant moves ahead of the release of the minutes of the latest Federal Reserve meeting on Wednesday.

Gold stocks are seeing considerable strength in early trading after coming under pressure in the previous session. The NYSE Arca Gold Bugs Index has surged up by 2.8 percent, with an increase by the price of gold contributing to the strength in the sector.

Steel, housing, and transportation stocks are also seeing early strength, moving higher along with most of the other major sectors.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index surged up by 2.6 percent, while Hong Kong's Hang Seng Index ended the day up by 0.5 percent.

The major European markets have also moved to the upside on the day. While the German DAX Index has advanced by 1.3 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index are up by 0.9 percent and 0.7 percent, respectively.

In the bond market, treasuries are seeing modest strength, continuing to recover from last Friday's sell-off. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 2.636 percent.