U.S. Stocks Remain Mostly Positive In Afternoon Trading

(RTTNews) - Stocks moved modestly higher early in the session on Wednesday and remain mostly positive in afternoon trading. The major averages have all moved to the upside on the day, with the tech-heavy Nasdaq moving higher for the fourth consecutive session.

Currently, the Nasdaq and the S&P 500 are just off their highs of the session. The Nasdaq is up 87.98 points or 0.6 percent at 14,945.69 and the S&P 500 is up 17.09 points or 0.4 percent at 4,773.59, while the Dow is posting a more modest gain, up 69.73 points or 0.2 percent at 37,594.89.

The strength on Wall Street may reflect optimism ahead of the release of key U.S. inflation data in the comings days.

The Labor Department's reports on consumer and producer price inflation, which are due to be released on Thursday and Friday, respectively, could have a significant impact on the outlook for interest rates.

With economists expecting the reports to show slowdowns in the annual rate of core price growth, the data could bolster optimism about near-term rate cuts by the Federal Reserve.

However, if the data surprises to the episode, it could add to recent skepticism about whether the Fed will begin cutting rates in March.

Ahead of the reports, CME Group's FedWatch Tool is currently indicating a 64.5 percent chance the Fed will cut rates by a quarter point at its March meeting.

Sector News

Software stocks have shown a strong move to the upside on the day, driving the Dow Jones U.S. Software Index up by 1.5 percent to its best intraday level in over two years.

Considerable strength also remains visible among housing stocks, as reflected by the 1.2 percent gain being posted by the Philadelphia Housing Sector Index.

Lennar (LEN) has helped lead the sector higher after the homebuilder raised its annual dividend to $2.00 per share from $1.50 per share and increased its stock repurchase authorization by $5 billion.

On the other hand, energy stocks have moved notably lower on the day, with a pullback by the price of crude oil weighing on the sector.

With crude for February delivery slumping $1 or 1.4 percent to $71.24 a barrel, the Philadelphia Oil Service Index and the NYSE Arca Oil Index are both down by 1.2 percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Wednesday, although Japan's Nikkei 225 Index bucked the downtrend and jumped by 2.0 percent. China's Shanghai Composite Index fell by 0.5 percent, while Hong Kong's Hang Seng Index slid by 0.6 percent.

Meanwhile, the major European markets finished the day little changed. While the U.K.'s FTSE 100 Index declined by 0.4 percent, the French CAC 40 Index and the German DAX Index both ended the day roughly flat.

In the bond market, treasuries have moved modestly lower over the course of the session after seeing early strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.5 basis points at 4.034 percent.