Bargain Hunting Contributes To Early Strength On Wall Street - U.S. Commentary

(RTTNews) - After moving sharply lower over the course of the previous session, stocks are mostly higher in early trading on Tuesday. The major averages have all moved to the upside but have only partly offset yesterday's substantial losses.

The major averages have recently pulled back off their highs for the young session but are holding on to moderate gains. The Dow is up 46.95 points or 0.3 percent at 15,419.75, the Nasdaq is up 25.35 points or 0.6 percent at 4,022.30 and the S&P 500 is up 8.98 points or 0.5 percent at 1,750.87.

The early strength on Wall Street is partly due to bargain hunting following the sell-off seen on Monday, which extended a recent downward trend for the markets.

With the steep losses on the day, the Dow and the S&P 500 fell to their lowest levels in over three months, while the Nasdaq set a two-month closing low.

The Dow was down by 7.3 percent compared to the record closing high set on the last day of 2013, closing in on the 10 percent decrease that defines a correction.

Some traders are subsequently picking up stocks at reduced levels, although buying interest remains somewhat subdued amid continued weakness in emerging market assets.

Nonetheless, natural gas stocks are moving significantly higher in early trading, with the NYSE Arca Natural Gas Index jumping by 2 percent. The strength in the sector comes amid a notable increase by the price of natural gas.

Networking, railroad and oil service stocks are also seeing early strength, while most of the other major sectors are showing more modest moves.

Among individual stocks, shares of ATMI (ATMI) are moving sharply higher in early after the semiconductor materials supplier agreed to be acquired by Entegris (ENTG) in a deal valued at approximately $1.15 billion.

Fast food giant Yum! Brands (YUM) is also seeing early strength after reporting better than expected fourth quarter earnings. The company also reaffirmed its 2014 earnings growth guidance.

Additionally, Microsoft (MSFT) is posting a modest gain after the software giant said its board has appointed Satya Nadella as Chief Executive Officer, effective immediately. The company said Nadella previously held the position of Executive Vice President of Microsoft's Cloud and Enterprise group.

On the other hand, shares of Take-Two Interactive (TTWO) have come under pressure after the video game company reported better than expected third quarter results but provided disappointing fourth quarter guidance.

In overseas trading, stock markets across the Asia-Pacific region saw substantial weakness during trading on Tuesday. Japan's Nikkei 225 Index tumbled by 4.2 percent, while Hong Kong's Hang Seng Index slumped by 2.9 percent.

Meanwhile, the major European markets have turned mixed on the day. While the German DAX Index is down by 0.3 percent, the French CAC 40 Index is up by 0.5 percent and the U.K.'s FTSE 100 Index is up by 0.1 percent.

In the bond market, treasuries are giving back some ground after moving sharply higher in recent sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.3 basis points at 2.624 percent.