Stocks Seeing Further Upside After Initial Jump - U.S. Commentary

(RTTNews) - After rising sharply at the open, stocks have seen some further upside over the course of the trading day on Monday. With the strong upward move, the major averages are regaining ground after ending last Friday's trading at their lowest closing levels in about four months.

Currently, the major averages are at their best levels of the day. The Dow is up 343.31 points or 1.9 percent at 18,231.59, the Nasdaq is up 121.05 points or 2.4 percent at 5,167.42 and the S&P 500 is up 43.52 points or 2.1 percent at 2,128.70.

The rebound on Wall Street comes on the heels of news the FBI has once again cleared Democratic presidential nominee Hillary Clinton of criminal charges related to her use of a private email server while Secretary of State.

"Based on our review, we have not changed our conclusions that we expressed in July with respect to Secretary Clinton," FBI Director James Comey wrote in a letter sent to members of Congress on Sunday.

Late last month, Comey revealed that the FBI re-opened its probe of Clinton after learning of the existence of new emails on a device obtained in connection with an unrelated investigation.

U.S. officials familiar with the case told the Washington Post the new emails were either personal or duplicative of those found earlier.

The news that Clinton has been cleared for a second time is seen as boosting her chances of emerging victorious on Election Day on Tuesday, which could be a positive for stocks.

JPMorgan analysts predicted the S&P 500 would jump by 3 percent from last Friday's close if Clinton wins the election.

Sector News

Electronic storage stocks continue to see substantial strength in mid-day trading, with the NYSE Arca Disk Drive Index jumping by 5.6 percent. The index ended the previous session at a four-month closing low.

Datalink (DTLK) is leading the storage sector higher after the company agreed to be acquired by Insight Enterprises (NSIT) in a deal valued at approximately $258 million.

Significant strength is also visible among biotechnology stocks, as reflected by the 3.9 percent gain being posted by the NYSE Arca Biotechnology Index. With the gain, the index is climbing further off the four-month closing low it set last Thursday.

Amgen (AMGN) is posting a notable gain after the FDA approved the company's supplemental Biologics License Application for the expanded use of Enbrel.

Steel, airline, semiconductor, and banking stocks are also seeing considerable strength, moving higher along with most of the other major sectors.

Gold stocks are among the few sectors bucking the uptrend, dragging the NYSE Arca Gold Bugs Index down by 4.8 percent. The weakness in the sector comes amid a steep drop by the price of gold.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved higher during trading on Monday. Japan's Nikkei 225 Index surged up by 1.6 percent, while Hong Kong's Hang Seng Index advanced by 0.7 percent.

The major European markets are also seeing significant 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 both shot up by 1.9 percent.

In the bond market, treasuries have moved to the 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 4.5 basis points at 1.828 percent.