Major Averages Moving Sharply Higher In Early Trading

(RTTNews) - Stocks have moved sharply higher in early trading on Monday, partly offsetting the notable weakness that was seen last week. The major averages have shown strong moves to the upside but remain well off their recent highs.

The early strength on Wall Street is partly due to bargain hunting following last week's pullback, which dragged the Dow and the S&P 500 to their lowest levels in a month.

Buying interest was also generated by the release of some strong economic data from overseas, including an upbeat report on European private sector activity.

Semiconductor stocks have shown a notable move to the upside in early trading, driving the Philadelphia Semiconductor Index up by 1.8 percent. LSI Corp. (LSI) is leading the sector higher after agreeing to be acquired by Avago Technologies (AVGO) for $6.6 billion in cash.

Considerable strength has also emerged among biotechnology stocks, as reflected by the 1.7 percent gain being posted by the NYSE Arca Biotechnology Index.

Electronic storage, utilities, and railroad stocks are also seeing early strength, moving higher along with most of the other major sectors.

The major averages have seen some further upside in recent trading, reaching new highs for the young session. The Dow is up 169.58 points or 1.1 percent at 15,924.94, the Nasdaq is up 40.41 points or 1 percent at 4,041.39 and the S&P 500 is up 16.04 points or 0.9 percent at 1,791.36.