Stocks Remain Firmly Positive In Mid-Day Trading - U.S. Commentary

(RTTNews) - After moving sharply higher early in the session, stocks continue to see considerable strength in mid-day trading on Monday. With the upward move, the major averages are adding to the strong gains posted in the previous week.

The major averages have moved roughly sideways in recent trading, hovering firmly in positive territory. The Dow is up 216.17 points or 1.3 percent at 16,608.16, the Nasdaq is up 62.35 points or 1.4 percent at 4,566.78 and the S&P 500 is up 24.51 points or 1.3 percent at 1,942.29.

The strength on Wall Street comes amid a sharp increase by the price of crude oil, which has recently been a key driver of the markets.

Crude oil for March delivery is soaring $2.07 to $31.71 a barrel after ending last week up $0.20 or 0.7 percent at $29.64 a barrel. The more actively traded April futures are jumping $1.84 to $33.59 a barrel.

The price of crude oil has seen considerable volatility over the past few weeks amid speculation about the outlook for global production.

Overall trading activity has remained somewhat subdued, however, as some traders are staying on the sidelines amid a lack of major U.S. economic data on the day.

The economic calendar will pick up in the comings days, with traders likely to keep an eye on reports on new and existing home sales, consumer confidence, and durable goods orders.

Earnings news from companies such as Home Depot (HD), Macy's (M), Target (TGT), Office Depot (ODP), J.C. Penney (JCP), and HP Inc. (HPQ) may also attract attention.

Sector News

The increase by the price of crude oil has contributed to significant strength among energy stocks, which are seeing further upside after moving notably higher last week.

The Philadelphia Oil Service Index has shot up by 3.7 percent, while the NYSE Arca Natural Gas Index and the NYSE Arca Oil & Gas Index are up by 3.2 percent and 2.5 percent, respectively.

Substantial strength is also visible among steel stocks, as reflected by the 4.1 percent gain being posted by the NYSE Arca Steel Index. With the gain, the index has reached its best intraday level in well over a month.

Telecom, internet, transportation and banking stocks are also seeing considerable strength, moving higher along with most of the other major sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index and Hong Kong's Hang Seng Index both advanced by 0.9 percent, while China's Shanghai Composite Index jumped by 2.4 percent.

The major European markets also showed strong moves to the upside on the day. While the U.K.'s FTSE 100 Index surged up by 1.5 percent, the French CAC 40 Index and the German DAX Index jumped by 1.8 percent and 2 percent, respectively.

In the bond market, treasuries are seeing modest weakness amid the strength on Wall Street. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.2 basis points at 1.76 percent.