Stocks Mostly Higher In Reaction To Comments From Putin - U.S. Commentary

(RTTNews) - With traders reacting positively to comments from Russian President Vladimir Putin, stocks have moved mostly higher during trading on Tuesday. The markets are extending yesterday's upward move, further offsetting the pullback seen last week.

Currently, the major averages are all in positive territory, with the tech-heavy Nasdaq posting a standout gain. While the Nasdaq is up 39.17 points or 0.9 percent at 4,319.11, the Dow is up 82.13 points or 0.5 percent at 16,329.35 and the S&P 500 is up 10.06 points or 0.5 percent at 1,868.89.

The strength on Wall Street in mid-day trading comes on the heels of Putin's remarks before a joint session of the Russian parliament.

Putin indicated that the separatist Crimea region would rejoin Russia following Sunday's referendum but claimed that he does not plan to seize any other regions of Ukraine.

Peter Boockvar, chief market analyst at the Lindsey Group, said, "While Putin said today that he doesn't want to split up Ukraine, which in turn boosted European and U.S. stocks, the next big event is May 25th. That is when Ukrainians go to the polls to elect their next President."

"If a pro Russian leader wins, Putin has in essence taken over the whole country and make no mistake, he will be doing his best to get his first choice elected," he added.

Traders are also digesting a report from the Commerce Department showing that housing starts fell modestly in February but from a notably upwardly revised level in January.

The report said housing starts dipped 0.2 percent to a seasonally adjusted annual rate of 907,000 in February from the revised January estimate of 909,000.

Economists had expected housing starts to climb to 910,000 from the 880,000 originally reported for the previous month.

Meanwhile, building permits jumped 7.7 percent to an annual rate of 1.018 million in February from the revised January rate of 945,000. Building permits are seen as an indicator of future housing demand.

A separate report released by the Labor Department showed a modest increase in consumer prices in the month of February.

Sector News

Biotechnology stocks have shown a substantial move to the upside over the course of the trading day, driving the NYSE Arca Biotechnology Index up by 2.4 percent. The index is climbing further off the nearly one-month closing low set last Friday.

Nektar Therapeutics (NKTR) and Exact Sciences (EXAS) are turning in two of the biotech sector's best performances, advancing by 5.9 percent and 5.1 percent, respectively.

Significant strength has also emerged among software stocks, as reflected by the 2.1 percent gain being posted by the Dow Jones Software Index. Microsoft (MSFT) is leading the sector higher, with the software giant surging up by 4.2 percent.

Airline stocks are also seeing considerable strength in mid-day trading, with the NYSE Arca Airline Index up by 1.4 percent. With the gain, the index is on pace to end the session at its best closing level in almost twelve years.

Computer hardware, housing, and healthcare stocks are also moving notably higher, while gold stocks are bucking the uptrend amid a steep drop by the price of the precious metal.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index advanced by 0.9 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 French CAC 40 Index has risen by 1.1 percent, the German DAX Index and the U.K.' FTSE 100 Index are up by 0.9 percent and 0.8 percent, respectively.

In the bond market, treasuries have moved modestly higher, partly offsetting the pullback seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.4 basis points at 2.685 percent.