Major Averages Posting Strong Gains In Early Trading

(RTTNews) - After ending the previous session modestly lower, stocks have moved sharply higher in early trading on Tuesday. The major averages have climbed firmly into positive territory, more than offsetting the losses posted on Monday.

The early strength on Wall Street comes as stocks continue to recover from yesterday's initial drop, which analysts suggested was overdone.

Many traders remain on the sidelines, however, with the upcoming New Year's Day holiday keeping trading activity relatively subdued.

Telecom stocks have shown a strong move to the upside, driving the NYSE Arca Telecom Index up by 1.3 percent. Qualcomm (QCOM) has helped to lead the sector higher, climbing by 2 percent.

Retail, internet, and networking stocks are also seeing notable strength, moving higher along with most of the other major sectors.

Currently, the major averages are hanging on to strong gains on the day. The Dow is up 161.86 points or 0.9 percent at 17,690.13, the Nasdaq is up 49.84 points or 1 percent at 5,090.83 and the S&P 500 is up 18.08 points or 0.9 percent at 2,074.58.