Stocks Pull Back Off Initial Highs But Remain Firmly Positive - U.S. Commentary

Shutterstock photo

( - Stocks moved sharply higher at the start of trading on Tuesday, although buying interest waned shortly after the open. The major averages have subsequently pulled back off their highs for the session but remain in positive territory.

Currently, the major averages are holding on to notable gains. The Dow is up 80.73 points or 0.5 percent at 18,167.13, the Nasdaq is up 50.69 points or 1 percent at 5,250.51 and the S&P 500 is up 12.57 points or 0.6 percent at 2,139.07.

The initial strength on Wall Street came as traders picked up stocks at reduced levels, with the major averages rebounding after ending Monday's trading at their lowest closing levels in a month.

Shares of Netflix ( NFLX ) have moved sharply higher on the day after the video streaming service reported better than expected third quarter results amid strong subscriber growth. Netflix also provided upbeat guidance.

Health insurer UnitedHealth ( UNH ) is also posting a standout gain after reporting better than expected third quarter earnings and revenues and raising its full-year guidance.

Meanwhile, shares of IBM ( IBM ) have moved to the downside even though the tech giant reported third quarter results that exceeded analyst estimates.

On the U.S. economic front, the Labor Department released a report before the start of trading showing that consumer prices rose in line with economist estimates in the month of September.

The Labor Department said its consumer price index climbed by 0.3 percent in September after edging up by 0.2 percent in August.

Excluding food and energy prices, the core consumer price index inched up by 0.1 percent in September after increasing by 0.3 percent in August. Economists had expected core prices to rise by 0.2 percent.

The annual rate of consumer price inflation accelerated to 1.5 percent in September from 1.1 percent, while the core rate slowed to 2.2 percent from 2.3 percent.

A separate report from the National Association of Home Builders showed a pullback in homebuilder confidence in the month of October.

The report said the NAHB/Wells Fargo Housing Market Index dipped to 63 in October after jumping to an eleven-month high of 65 in September. The drop by the index matched economist estimates.

Gold stocks have shown a substantial move to the upside on the day, driving the NYSE Arca Gold Bugs Index up by 1.9 percent. The strength in the sector comes as gold for December delivery is climbing $3.70 to $1,260.30 an ounce.

Internet, biotechnology, steel and airline stocks are also seeing considerable 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 rose by 0.4 percent, while Hong Kong's Hang Seng Index surged up by 1.6 percent.

The major European markets have also moved notably higher on the day. While the U.K.'s FTSE 100 Index is up by 0.8 percent, the German DAX Index and the French CAC 40 Index are up by 1.1 percent and 1.2 percent, respectively.

In the bond market, treasuries have shown a lack of direction over the course of the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is unchanged at 1.766 percent.

For comments and feedback: contact

This article appears in: News Headlines
Referenced Symbols: IBM , NFLX , UNH

More from RTT News


See headlines for IBM

Follow on: