Stocks Continue To Post Substantial Gains In Mid-Day Trading - U.S. Commentary

(RTTNews) - Following the volatility seen in the previous session, stocks have moved sharply higher over the course of the trading day on Friday. With the strong gains on the day, the Dow and the S&P 500 have reached their best intraday levels in over two months.

Currently, the major averages are just off their highs for the session. The Dow is up 223.52 points or 1.3 percent at 17,218.65, the Nasdaq is up 67.19 points or 1.4 percent at 4,729.34 and the S&P 500 is up 27.68 points or 1.4 percent at 2,017.25.

The strength on Wall Street comes on the heels of a rally by European stocks, which led to a 2.6 percent jump by the European STOXX 600 Index.

European stocks showed a substantial rebound on the day after pulling back sharply over the course of the previous session.

Analysts attributed the rebound by European stocks to renewed optimism about the European Central Bank's new stimulus measures announced on Thursday.

While traders soured on the stimulus as the previous session progressed, they appear to have once again rethought their stance on the issue.

An increase by the price of crude oil has also generated buying interest, with crude for April delivery climbing $0.69 to $38.53 a barrel.

Earlier in the session, the price of crude oil reached its highest level of 2016, benefiting from an optimistic report from the International Energy Agency.

In its monthly report, the IEA said the price of oil may have bottomed due to lower output from the U.S. and other non-OPEC producers.

Among individual stocks, shares of Finisar (FNSR) are moving sharply higher after the fiber optic component supplier reported better than expected third quarter earnings and provided upbeat guidance.

Restaurant chain Bojangles (BOJA) is also posting a standout gain after reporting fourth quarter results that exceeded analyst estimates.

On the other hand, shares of Zumiez (ZUMZ) are under pressure after the action sports apparel retailer reported better than expected fourth quarter results but provided disappointing guidance.

Sector News

Reflecting the increase by the price of crude oil, energy stocks continue to turn in some of the market's best performances in mid-day trading.

While the NYSE Arca Oil & Gas Index has jumped by 2.5 percent, the NYSE Arca Natural Gas Index and the Philadelphia Oil Service Index are surging up by 4.3 percent and 4.6 percent, respectively.

Brokerage stocks also continue to see considerable strength on the day, resulting in a 2.7 percent gain by the NYSE Arca Broker/Dealer Index. The index has risen to its best intraday level in almost two months.

Significant strength is also visible among biotechnology stocks, as reflected by the 2.4 percent gain being posted by the NYSE Arca Biotechnology Index. The gain by the index comes after it closed lower in the three previous sessions.

Railroad, chemical, and banking stocks are also seeing substantial strength, while gold stocks are among the few groups bucking the uptrend.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved to the upside during trading on Friday. Japan's Nikkei 225 Index rose by 0.5 percent, while Hong Kong's Hang Seng Index surged up by 1.1 percent.

As mentioned above, the major European markets saw substantial strength on the day. While the U.K.'s FTSE 100 Index jumped by 1.7 percent, the French CAC 40 Index and the German DAX Index soared by 3.3 percent and 3.5 percent, respectively.

In the bond market, treasuries are seeing further downside amid the rally on Wall Street. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.8 basis points at 1.977 percent.