Stocks Move Higher Amid Rebound By Price Of Oil - U.S. Commentary

(RTTNews) - After initially showing a lack of direction, stocks have moved mostly higher over the course of the trading session on Wednesday. With the upward move, the Dow and the S&P 500 have risen to new multi-month intraday highs.

Currently, the major averages are posting moderate gains, just off their highs for the session. The Dow is up 48.45 points or 0.3 percent at 18,102.05, the Nasdaq is up 16.78 points or 0.3 percent at 4,957.11 and the S&P 500 is up 4.09 points or 0.2 percent at 2,104.89.

The strength that has emerged on Wall Street is partly due to an increase by the price of crude oil, which has recovered from earlier weakness.

Crude for May delivery is currently climbing $0.80 to $41.88 a barrel after falling as low as $39.85 a barrel earlier in the day.

The rebound by the price of oil came following the release of a report from the Energy Information Administration showing that crude oil inventories rose by less than expected last week.

A positive reaction to some of the latest earnings news from big-name companies may also be contributing to the strength on Wall Street.

Shares of Yahoo (YHOO) have moved notably higher after the online media giant reported slightly stronger than expected first quarter results.

Yahoo has recently been in focus as the company considers bids for its core operations, with Verizon (VZ) reportedly the leading contender.

Semiconductor giant Intel (INTC) has also moved to the upside after reporting better than expected first quarter earnings but providing disappointing guidance.

In an effort to intensify its focus in high-growth areas, Intel also announced a restructuring initiative that will result in the reduction of up to 12,000 positions globally.

On the other hand, shares of Coca-Cola (KO) have come under pressure after the beverage giant reported first quarter earnings that beat analyst estimates but on weaker than expected worldwide case volume.

Sector News

Computer hardware stocks have shown a strong move to the upside on the day, driving the NYSE Arca Computer Hardware Index up by 2.1 percent. The index continues to regain ground after falling to its lowest closing level in well over a month last Friday.

Lexmark (LXK) is leading the hardware sector higher after the printer maker agreed to be acquired by Chinese investors for $3.6 billion in cash.

Significant strength has also emerged among gold stocks, as reflected by the 1.2 percent gain being posted by the NYSE Arca Gold Bugs Index. With the gain, the index has reached its best intraday level in well over a year.

The strength among gold stocks comes amid a modest increase by the price of the precious metal, with gold for June delivery rising $1.50 to $1,255.80 an ounce.

Steel, energy, and semiconductor stocks have also moved to the upside on the day, while some weakness remains visible among commercial real estate stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan's Nikkei 225 Index edged up by 0.2 percent, while Hong Kong's Hang Seng Index dropped by 0.9 percent.

Meanwhile, the major European markets also moved to the upside on the day. While the U.K.'s FTSE 100 Index inched up by 0.1 percent, the French CAC 40 Index and the German DAX Index advanced by 0.6 percent and 0.7 percent, respectively.

In the bond market, treasuries have turned lower after seeing modest strength earlier in the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.5 basis points at 1.798 percent.