U.S. Stocks Edge Modestly Higher As Treasury Yields Slump

(RTTNews) - After showing a lack of direction earlier in the session, stocks have moved modestly higher in recent trading on Wednesday. The major averages have moved to the upside after spending most of the day bouncing back and forth across the unchanged line.

Currently, the major averages are just off their highs of the session. The Dow is up 122.88 points or 0.3 percent at 37,668.21, the Nasdaq is up 33.28 points or 0.2 percent at 15,107.85 and the S&P 500 is up 8.93 points or 0.2 percent at 4,783.68.

The recent uptick by stocks comes as treasury yields have moved notably lower over the course of the session, with the yield on the benchmark ten-year note falling to its lowest level in five months.

Treasury yield saw further downside in recent trading after the Treasury Department revealed this month's auction of $58 billion worth of five-year notes attracted average demand.

The decrease in treasury yields has added to optimism about the outlook for interest rates, generating renewed buying interest on Wall Street.

Earlier in the day traders seemed reluctant to continue buying stocks following the recent strength in the markets, which lifted the Nasdaq and S&P 500 to their best closing levels in almost two years on Tuesday.

At the same time, traders also appeared hesitant to cash in on the recent gains amid concerns about missing out on further upside.

Sector News

Gold stocks have shown a strong move to the upside on the day, with the NYSE Arca Gold Bugs Index climbing by 1.6 percent. The index is currently on pace to end the session at its best closing level in over seven months.

The strength among gold stocks comes as the price of gold for February delivery is jumping $25.20 to $2,095 an ounce.

Notable strength is also visible among tobacco stocks, as reflected by the 1.4 percent gain being posted by the NYSE Arca Tobacco Index.

Brokerage, housing and pharmaceutical stocks are also seeing some strength on the day, while energy stocks are giving back ground amid a pullback by the price of crude oil.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index jumped by 1.1 percent, while Hong Kong's Hang Seng Index surged by 1.7 percent.

The major European markets also moved to the upside on the day. While the U.K.'s FTSE 100 Index climbed by 0.4 percent, the German DAX Index rose by 0.2 percent and the French CAC 40 Index closed just above the unchanged line.

In the bond market, treasuries have moved notably higher over the course of the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 8.4 basis points at 3.802 percent.