Stocks Remain Mostly Positive Following Early Upward Move - U.S. Commentary

(RTTNews) - After showing an early move to the upside, stocks remain mostly positive in mid-day trading on Wednesday. Buying interest has waned from earlier in the session, but the major averages are holding on to moderate gains.

While the Dow has pulled back well off its best levels, the blue chip index remains up 57.46 points or 0.3 percent at 18,094.16. The Nasdaq is also up 21.29 points or 0.4 percent at 4,998.57, while the S&P 500 is up 9.41 points or 0.5 percent at 2,105.25.

A positive reaction to earnings news from Intel (INTC) is contributing to the strength on Wall Street, with the semiconductor giant surging up by 4.4 percent.

After the close of trading on Tuesday, Intel reported first quarter earnings that came in line with analyst estimates, although its revenues came in below expectations.

While Intel also provided lackluster revenue guidance for the second quarter, it forecast better than expected profit margins for the quarter.

Delta Air Lines (DAL) is also moving notably higher after reporting first quarter earnings that came in slightly above expectations.

On the other hand, financial giant Bank of America (BAC) has moved to the downside even after reporting a first quarter profit compared to a year-ago loss.

Traders are also digesting a mixed batch of economic data, including reports showing a bigger than expected rebound in homebuilder confidence but a bigger than expected drop in industrial production.

The National Association of Home Builders released a report showing a notable rebound in homebuilder confidence in the month of April.

The report said the NAHB/Wells Fargo Housing Market Index jumped to 56 in April from a nine-month low of 52 in March. Economists had been expecting the index to climb to 55.

Meanwhile, the Federal Reserve released a report showing that industrial production fell by 0.6 percent in March after inching up by 0.1 percent in February. Economists had expected production to drop by 0.3 percent.

A separate report from the New York Fed also showed an unexpected contraction in regional manufacturing activity in the month of April.

Sector News

Energy stocks continue to see substantial strength in mid-day trading, benefiting from a sharp increase by the price of crude oil. Crude for May delivery is currently surging up $2.37 to $55.66 a barrel.

Reflecting the strength in the energy sector, the Philadelphia Oil Service Index and the NYSE Arca Natural Gas Index are jumping by 2.5 percent and 2.4 percent, respectively.

Steel stocks are also turning in a strong performance on the day, driving the NYSE Arca Steel Index up by 1.8 percent to its best intraday level in over a month. Considerable strength also remains visible among gold stocks, as reflected by the 1.7 percent gain being posted by the NYSE Arca Gold Bugs Index. The strength in the sector comes as gold for June delivery is climbing $3.90 to $1,196.50 an ounce.

Computer hardware, semiconductor, and chemical stocks are also seeing notable strength, moving higher along with a majority of the major sectors.

Other Markets

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

Meanwhile, the major European markets all moved to the upside on the day. While the German DAX Index closed only just above the unchanged line, the U.K.'s FTSE 100 Index rose by 0.3 percent and the French CAC 40 Index advanced by 0.7 percent.

In the bond market, treasuries continue to see modest strength, adding to the gains posted in the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.3 basis points at 1.881 percent.