Major Averages Close Firmly In Positive Territory

(RTTNews) - Stocks showed a strong move to the upside over the course of the trading day on Tuesday after initially showing a lack of direction. With the upward move, the major averages partly offset the weakness seen over the past several sessions.

Steel stocks moved sharply higher over the course of the trading day, driving the NYSE Arca Steel Index up by 4 percent. With the gain, the index bounced well off the six-year closing low set in the previous session.

Cliffs Natural Resources (CLF) helped to lead the steel sector higher, soaring by 23.8 percent ahead of the release of its second quarter results on Wednesday.

Significant strength was also visible among energy stocks, which moved higher along with the price of crude oil. Crude for September delivery climbed $0.59 to $47.98 a barrel, rebounding from a four-month low.

Reflecting the strength in the energy sector, the Philadelphia Oil Service Index surged up by 3.9 percent, while the NYSE Arca Oil & Gas Index jumped by 3 percent.

Railroad stocks also saw considerable strength, with the Dow Jones Railroads Index climbing by 3.7 percent. Kansas City Southern (KSU) and Union Pacific (UNP) posted standout gains.

Tobacco, biotechnology, trucking and semiconductor stocks also showed strong moves to the upside on the day, reflecting broad based buying interest.

The major averages moved roughly sideways going into the close, hovering firmly in positive territory. The Dow jumped 189.68 points or 1.1 percent to 17,630.27, the Nasdaq advanced 49.43 points or 1 percent to 5,089.21 and the S&P 500 surged up 25.61 points or 1.2 percent to 2,093.25.