WASHINGTON (dpa-AFX) - After moving to the upside early in the session, stocks remain mostly positive in mid-day trading on Tuesday. The tech-heavy Nasdaq has shown a particularly strong upward move, jumping to a new record intraday high.
Currently, the major averages are all in positive territory, although the Nasdaq is outperforming its counterparts. While the Nasdaq is up 124.87 points or 1.1 percent at 11,900.33, the Dow is up 93.79 points or 0.3 percent at 28,523.84 and the S&P 500 is up 13.22 points or 0.4 percent at 3,513.53.
Technology stocks are seeing continued strength on the day, with Apple (AAPL) helping to lead the sector higher after yesterday's stock split.
Shares of Zoom Video (ZM) have also spiked after the video conferencing company reported better than expected second quarter results and raised its full-year guidance.
Adding to the positive sentiment, the Institute for Supply Management released a report showing manufacturing activity in the U.S. expanded at a faster rate in the month of August.
The ISM said its purchasing managers index rose to 56.0 in August from 54.2 in July, with a reading above 50 indicating growth in manufacturing activity. Economists had expected the index to inch up to 54.5.
'After the coronavirus (COVID-19) brought manufacturing activity to historic lows, the sector continued its recovery in August, the first full month of operations after supply chains restarted and adjustments were made for employees to return to work,' said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.
He added, 'Demand and consumption continued to drive expansion growth, with inputs representing near- and moderate-term supply chain difficulties.'
Meanwhile, a separate report from the Commerce Department showed construction spending inched up by much less than expected in the month of July.
Sector News
Steel stocks have moved sharply higher over the course of the session, driving the NYSE Arca Steel Index up by 1.8 percent. The strength in the sector comes following data showing China's manufacturing sector continued to expand in August.
Significant strength also remains visible among housing stocks, as reflected by the 1.7 percent gain being posted by the Philadelphia Housing Sector Index.
Retail stocks are also seeing considerable strength on the day, with the Dow Jones U.S. Retail Index climbing by 1.5 percent to a record intraday high.
Semiconductor and chemical stocks have also shown notable moves to the upside, while notable weakness has emerged among biotechnology and pharmaceutical stocks.
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 closed just below the unchanged line, while China's Shanghai Composite Index rose by 0.4 percent.
The major European markets also ended the day mixed. While the German DAX Index edged up by 0.2 percent, the French CAC 40 Index dipped by 0.2 percent and the U.K.'s FTSE 100 Index tumbled by 1.7 percent.
In the bond market, treasuries have bounced back near the unchanged line after seeing early weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is unchanged at 0.693 percent.
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