Stocks Move Modestly Higher As Traders Hunt For Bargains - U.S. Commentary

(RTTNews) - After initially showing a lack of direction, stocks are mostly higher in mid-day trading on Tuesday. Buying interest has remained relatively subdued, however, limiting the upside for the markets.

The major averages have recently pulled back off their highs for the session but currently remain in positive territory. The Dow is up 19.35 points or 0.1 percent at 16,265.22, the Nasdaq is up 23.24 points or 0.6 percent at 4,103.00 and the S&P 500 is up 3.96 points or 0.2 percent at 1,849.00.

Bargain hunting is likely contributing to the modest strength on Wall Street following the notable downward move seen over the past few sessions.

The tech-heavy Nasdaq is regaining some ground after showing its steepest three-session decline since November of 2011 and ending Monday's trading at its worst closing level in two months.

However, traders seem reluctant to make any significant moves as they wait for the latest earnings season to get underway.

After the close of today's trading, aluminum giant Alcoa (AA) is scheduled to release its first quarter results, marking the unofficial start of the earnings season.

Another quiet day on the U.S. economic front is also keeping traders on the sidelines, although comments from several Federal Reserve officials may attract attention later in the day.

Among individual stocks, shares of Alkermes (ALKS) have moved notably higher after the biopharmaceutical company announced positive results from a pivotal phase 3 study of its experimental drug to treat schizophrenia.

Athletic apparel giant Nike (NKE) is also turning in a strong performance after Stifel upgraded its rating on the company's stock to Buy from Hold.

On the other hand, shares of Dr. Pepper Snapple Group (DPS) have come under pressure after Wells Fargo downgraded the beverage maker's shares to Underperform from Market Perform.

Sector News

Extending a month-long upward trend, steel stocks are seeing considerable strength in mid-day trading. The NYSE Arca Steel Index is currently up by 2 percent after reaching a nearly three-month intraday high earlier in the session.

Cliffs Natural Resources (CLF) has helped to lead the steel sector higher, while AK Steel (AKS) and A.M. Castle (CAS) are also posting strong gains.

Significant strength has also emerged among tobacco stocks, as reflected by the 1.6 percent gain being posted by the NYSE Arca Tobacco Index. British American Tobacco (BTI) has jumped 3.2 percent to its best intraday level in over ten months.

Gold, electronic storage and utilities stocks are also seeing some strength on the day, although buying interest is relatively subdued.

On the other hand, airline stocks have come under pressure over the course of the session, dragging the NYSE Arca Airline Index down by 1.2 percent. The index is pulling back further off the nearly twelve-year intraday high it set last Friday.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index slumped by 1.4 percent, while Hong Kong's Hang Seng Index advanced by 1 percent.

Meanwhile, the major European markets ended the day modestly lower but well off their worst levels. While the U.K.'s FTSE 100 Index dropped by 0.5 percent, the French CAC 40 Index and the German DAX Index fell by 0.3 percent and 0.2 percent, respectively.

In the bond market, treasuries have climbed back near the unchanged line after seeing initial weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price is up by less than a basis point at 2.697 percent.