Stocks Extend Recent Move To The Upside - U.S. Commentary

(RTTNews) - Stocks moved mostly higher over the course of the trading session on Tuesday, adding to the gains posted in the previous session. With the upward move on the day, the major averages climbed to new record closing highs.

The major averages all ended the day modestly higher. The Dow rose 84.07 points or 0.4 percent to 22,641.67, the Nasdaq edged up 15.00 points or 0.2 percent to 6,531.71 and the S&P 500 inched up 5.46 points or 0.2 percent to 2,534.58.

The strength on Wall Street reflected recent upward momentum, as traders seem optimistic about the economic outlook and the prospects for Republican tax reform.

Nonetheless, trading activity was remained relatively subdued, with a lack of major U.S. economic data keeping some traders on the sidelines.

The Labor Department is scheduled to release its closely watched monthly jobs report on Friday, while reports on service sector activity and international trade may also attract attention in the coming days.

Airline stocks showed a substantial move to the upside on the day, driving the NYSE Arca Airline Index up by 4.1 percent. With the jump, the index reached its best intraday closing in well over a month.

JetBlue (JBLU), Delta Air Lines (DAL), and United Continental (UAL) turned in some of the airline sector's best performances.

Significant strength was also visible among gold stocks, as reflected by the 1.4 percent gain posted by the NYSE Arca Gold Bugs Index. The strength in the sector came despite a decrease by the price of gold.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index jumped by 1.1 percent, while Hong Kong's Hang Seng Index surged up by 2.3 percent.

European stocks also moved to the upside on the day, although the German markets were closed for a public holiday. The U.K.'s FTSE 100 Index and the French CAC 40 Index rose by 0.4 percent and 0.3 percent, respectively.

In the bond market, treasuries climbed back near the unchanged line after seeing early weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point at 2.334 percent.