Major Averages Climb More Firmly Into Positive Territory

(RTTNews) - After initially showing a lack of direction, stocks have moved mostly higher over the course of the trading day on Monday. The gains are extending the upward move seen in the two previous sessions, with the Dow and the S&P 500 reaching new record highs.

Biotechnology stocks are seeing significant strength in mid-day trading, resulting in a 1.5 percent gain by the NYSE Arca Biotechnology Index. The gain extends a recent upward move by the index, which has reached its best intraday level in over two months.

Within the biotech sector, shares of Idenix Pharmaceuticals (IDIX) have shown a substantial move to the upside after the biopharmaceutical company agreed to be acquired by drug giant Merck (MRK) for approximately $3.85 billion.

While Idenix is leading the sector higher, Nektar Therapeutics (NKTR) and Pharmacyclics (PCYC) are also posting standout gains on the day.

Considerable strength has also emerged among banking stocks, as reflected by the 1.2 percent gain being posted by the Dow Jones Banks Index. With the gain, the index has reached a two-month intraday high.

Defense, housing, and electronic storage stocks are also turning in strong performances, while some weakness is visible among utilities stocks.

The major averages have recently pulled back off their best levels of the day but remain firmly positive. The Dow is up 39.40 points or 0.2 percent at 16,963.68, the Nasdaq is up 22.79 points or 0.5 percent at 4,344.19 and the S&P 500 is up 5.26 points or 0.3 percent at 1,954.70.