U.S. Stocks Seeing Further Upside In Mid-Day Trading

(RTTNews) - Stocks have moved mostly higher over the course of the trading session on Wednesday after recovering from an initial move to the downside. With the turnaround on the day, the major averages continue to rebound from the sell-off seen on Monday.

In recent trading, the major averages have reached new highs for the session. The Dow is up 147.92 points or 0.6 percent at 25,679.97, the Nasdaq is up 82.22 points or 1.1 percent at 7,816.72 and the S&P 500 is up 19.61 points or 0.7 percent at 2,854.02.

The strength that has emerged on Wall Street reflects a positive reaction to reports President Donald Trump plans to delay imposing steep tariffs on auto imports.

A report from CNBC citing four sources said Trump plans to delay imposing the auto tariffs by up to six months as negotiations continue.

The turnaround by stocks in reaction to the reports reflects the markets' intense sensitivity to trade-related news in light of the escalating trade dispute between the U.S. and China.

Stocks initially came under pressure following the release of a report from the Commerce Department showing an unexpected pullback in U.S. retail sales in the month of April.

The Commerce Department said retail sales edged down by 0.2 percent in April after spiking by an upwardly revised 1.7 percent in March.

Economists had expected retail sales to rise by 0.2 percent compared to the 1.6 percent jump originally reported for the previous month.

Excluding a steep drop in auto sales, retail sales inched up by 0.1 percent in April after surging up by 1.3 percent in March, although ex-auto sales had been expected to climb by 0.7 percent.

Negative sentiment was also generated in reaction to a Federal Reserve report showing an unexpected decrease in industrial production in April.

The Fed said industrial production fell by 0.5 percent in April following a revised 0.2 percent uptick in March. Economists had expected production to come in unchanged.

Meanwhile, a separate report from the National Association of Home Builders showed homebuilder confidence has improved by much more than anticipated in the month of May.

The report said the NAHB/Wells Fargo Housing Market Index climbed to 66 in May from 63 in April, while economists had expected the index to inch up to 64.

Following declines in late 2018 due to higher interest rates and concerns over slower growth, the index has reached its highest level since October of 2018.

Sector News

Computer hardware stocks have shown a significant move to the upside over the course of the session, driving the NYSE Arca Computer Hardware Index up by 1.8 percent.

With the advance, the index continues to rebound after ending Monday's trading at its lowest closing level in well over a month.

Strength among semiconductor stocks is also contributed to a continued rebound by the Philadelphia Semiconductor Index, with the index climbing by 1.3 percent.

Biotechnology and software stocks are also seeing notable strength on the day, while most of the other major sectors are showing more modest moves.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Wednesday following recent weakness. Japan's Nikkei 225 Index rose by 0.6 percent, while China's Shanghai Composite Index spiked by 1.9 percent.

The major European markets also moved to the upside over the course of the session. While the French CAC 40 Index climbed by 0.6 percent, the U.K.'s FTSE 100 Index and the German DAX Index advanced by 0.8 percent and 0.9 percent, respectively.

In the bond market, treasuries have given back ground after an initial jump but remain firmly positive. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.2 basis points at 2.387 percent.
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