Major Averages Move Sharply Higher At The Open

(RTTNews) - Stocks moved sharply higher at the start of trading on Friday, extending the strong upward trend seen over the past two weeks. The major averages climbed firmly into positive territory, with the Dow reaching a new record intraday high.

The initial strength on Wall Street was largely in reaction to news of further monetary policy easing by the Bank of Japan.

By a 5-4 vote, the Bank of Japan's Monetary Policy Board unexpectedly decided to raise the monetary base at an annual pace of about 80 trillion yen. The bank previously targeted an increase of about 60 to 70 trillion yen.

The news out of Japan has overshadowed a Commerce Department report showing an unexpected drop in U.S. personal spending in the month of September.

Semiconductor stocks have shown a substantial move to the upside in early trading, driving the Philadelphia Semiconductor Index up by 3.8 percent. Microchip Technology (MCHP) is posting a notable gain after reporting second quarter earnings that matched analyst estimates.

Brokerage, internet, biotechnology, and electronic storage stocks are also seeing considerable strength, moving higher along with most of the other major sectors.

However, gold stocks are bucking the uptrend amid a sharp drop by the price of the precious metal. With gold for December delivery plunging $31.80 to $1,166.80 an ounce, the NYSE Arca Gold Bugs Index has tumbled by 4 percent.

Currently, the major averages are off their highs for the young session but are holding on to strong gains. The Dow is up 133.70 points or 0.8 percent at 17,329.12, the Nasdaq is up 53.60 points or 1.2 percent at 4,619.74 and the S&P 500 is up 15.20 points or 0.8 percent at 2,009.85.