Following the lackluster performance seen over the course of the previous session, stocks are seeing modest strength in mid-day trading on Wednesday. The major averages have all moved to the upside after ending Tuesday’s trading nearly unchanged.
Currently, the major averages continue to hover in positive territory. The Dow is up 90.98 points or 0.3 percent at 34,666.29, the Nasdaq is up 35.83 points or 0.3 percent at 13,772.30 and the S&P 500 is up 13.80 points or 0.3 percent at 4,215.84.
The modest strength on Wall Street may partly reflect continued optimism about the outlook for the global economy following yesterday’s upbeat manufacturing data.
Trading activity remains relatively light, however, as traders seem wary of making significant moves amid lingering concerns about inflation.
The Labor Department’s looming monthly jobs report may also be keeping some traders on the sidelines ahead of the release of the closely watched data on Friday.
Payroll processor ADP typically releases its report on private sector employment on the Wednesday before the Labor Department report, but the data was delayed until Thursday due to the Memorial Day holiday on Monday.
While the ADP report often shows stark differences from the Labor Department report, the data could still have given traders some idea of what to expect.
Later in the day, the Federal Reserve is scheduled to release its Beige Book, a compilation of economic evidence from the twelve Fed districts.
The Beige Book, which is typically released about two weeks before the next Fed meeting, could impact the outlook for monetary policy.
Most of the major sectors continue to show only modest moves in mid-day trading, although substantial strength remains visible among oil service stocks.
Reflecting the strength in the sector, the Philadelphia Oil Service Index has soared by 5.7 percent to its best intraday level in over a year.
The rally by oil service stocks comes as the price of crude oil is seeing further upside after ending the previous session at a more than two-year closing high, with crude for July delivery climbing $0.75 to $68.47 a barrel.
Oil producer stocks are also extending yesterday’s rally, while housing stocks have come under pressure over the course of the session.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index climbed by 0.5 percent, while China’s Shanghai Composite Index slid by 0.8 percent.
Meanwhile, the major European markets all moved to the upside on the day. While the German DAX Index edged up by 0.2 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index rose by 0.4 percent and 0.5 percent, respectively.
In the bond market, treasuries have rebounded following the pullback seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.6 basis points at 1.589 percent.
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