Stocks Move Notably Higher At The Start Of Trading - U.S. Commentary

(RTTNews) - Stocks moved sharply higher at the start of trading on Wednesday, regaining some ground following the sell-off seen in the previous session. The major averages jumped firmly into positive territory but have given back some ground since the open.

Currently, the major averages are well off their highs for the young session but holding on to gains. The Dow is up 79.44 points or 0.5 percent at 16,137.79, the Nasdaq is up 23.69 points or 0.5 percent at 4,659.80 and the S&P 500 is up 6.10 points or 0.3 percent at 1,919.95.

The initial strength on Wall Street was partly due to bargain hunting, with traders picking up stocks at reduced levels following the steep drop seen on Tuesday.

Traders also reacted positively to the release of payroll processor ADP's report on private sector employment in the month of August.

The report showed a notable increase in private sector employment during the month, although the pace of job growth fell short of economist estimates.

ADP said private sector employment climbed by 190,000 jobs in August following a downwardly revised increase of 177,000 jobs in July.

Economists had expected employment to jump by about 210,000 jobs compared to the increase of 185,000 jobs originally reported for the previous month.

A separate report from the Labor Department showed that labor productivity jumped by much more than previously estimated in the second quarter.

Later in the day, trading could be impacted by reaction to the Federal Reserve's Beige Book. The report is due to be released at 2 pm ET.

The Beige Book, which contains anecdotal evidence on economic conditions in the twelve Fed districts, could impact the outlook for interest rates.

Biotechnology stocks continue to turn in a strong performance on the day, with the NYSE Arca Biotechnology Index up by 1.2 percent. United Therapeutics (UTHR) and Incyte (INCY) are posting standout gains.

Tobacco, trucking, and airline stocks are also seeing notable strength, while gold and energy stocks have come under pressure as the day has progressed.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan's Nikkei 225 Index fell by 0.4 percent, while Hong Kong's Hang Seng Index slumped by 1.2 percent.

Meanwhile, the major European markets have moved to the upside on the day. While the French CAC 40 Index has advanced by 0.6 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both up by 0.5 percent.

In the bond market, treasuries have moved modestly lower over the course of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.4 basis points to 2.186 percent.