Stocks Follow Overseas Markets Sharply Higher - U.S. Commentary

(RTTNews) - Stocks have moved sharply higher in morning trading on Friday, adding to the gains posted in the previous session. The major averages continue to regain ground after ending Wednesday's trading at their lowest closing levels in over a year.

Currently, the major averages are off their highs for the session but still firmly positive. The Dow is up 187.72 points or 1.2 percent at 16,070.40, the Nasdaq is up 96.00 points or 2.2 percent at 4,568.05 and the S&P 500 is up 31.06 points or 1.7 percent at 1,900.05.

Early buying interest has been generated by strength in the overseas markets, as stocks around the world have moved sharply higher.

Overseas stocks have benefited from an increase in commodities prices as well as optimism about further stimulus from the European Central Bank.

ECB President Mario Draghi said yesterday the bank would review and possibly reconsider its monetary policy stance at the next meeting in early March.

The strength on Wall Street also comes amid a notable increase by the price of crude oil, with crude for March delivery surging up $2.18 to $31.71 a barrel.

Energy stocks have moved sharply higher amid the jump by the price of crude oil, which is seeing further upside following yesterday's rally.

The NYSE Arca Natural Gas Index has shot up by 5.8 percent, while the Philadelphia Oil Service Index is up by 5.1 percent and the NYSE Arca Oil & Gas Index is up by 3.8 percent.

Telecom, airline, brokerage and housing stocks are also seeing considerable strength, moving higher along with most of the other major sectors.

On the U.S. economic front, the National Association of Realtors released a report showing that existing home sales rebounded strongly in December after seeing a steep drop in the previous month.

NAR said existing home sales jumped 14.7 percent to an annual rate of 5.46 million in December from a rate of 4.76 million in November. Economists had expected sales to climb to a rate of 5.20 million.

A separate report from the Conference Board showed a modest decrease by its index of leading economic indicators in December.

In overseas trading, most stock markets across the Asia-Pacific region moved notably higher during trading on Friday. Japan's Nikkei 225 Index soared by 5.9 percent, while Hong Kong's Hang Seng Index jumped by 2.9 percent.

The major European markets have also shown substantial moves to the upside on the day. While the French CAC 40 Index has surged up by 3.8 percent, the German DAX Index and the U.K.'s FTSE 100 Index are both up by 2.6 percent.

In the bond market, treasuries have moved notably lower amid the rally on Wall Street. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 5.9 basis points at 2.078 percent.