Stocks Mostly Higher After Seeing Early Fluctuation - U.S. Commentary

(RTTNews) - Stocks are mostly higher in mid-day trading on Tuesday after seeing some fluctuation earlier in the session. The gains on the day are extending a recent upward move by the major averages, with the Nasdaq reaching its best intraday level in over a month.

The major averages have given back some ground in the past few minutes but currently remain firmly positive. The Dow is up 59.64 points or 0.4 percent at 15,284.33, the Nasdaq is up 15.68 points or 0.5 percent at 3,500.52 and the S&P 500 is up 9.25 points or 0.6 percent at 1,649.71.

The 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 outlook for the global economy as well as 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.

The first tranche of 2.5 billion euros will be released later this month if the Mediterranean nation fulfills its reform pledges.

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.

Sector News

Housing stocks are seeing significant strength in mid-day trading, with the Philadelphia Housing Sector Index up by 3.2 percent. The index is regaining some ground after ending the previous session at a six-month closing low.

D.R. Horton (DHI) has helped to lead the housing sector higher, jumping by 7.2 percent, while KB Home (KBH) and PulteGroup (PHM) are also posting strong gains.

Considerable strength has also emerged among transportation stocks, as reflected by the 2.3 percent gain being posted by the Dow Jones Transportation Average. The gain has lifted the average to its best intraday level in well over a month.

Steel stocks are also turning in a strong performance on the day, resulting in a 1.6 percent gain by the NYSE Arca Steel Index. Gold, chemical, and semiconductor stocks are also seeing notable strength.

Other Markets

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 also moved to the upside on the day. While the French CAC 40 Index rose by 0.5 percent, the U.K.'s FTSE 100 Index and the German DAX Index advanced by 1 percent and 1.1 percent, respectively.

In the bond market, treasuries have moved modestly higher, 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 1.5 basis points at 2.63 percent.