Stocks Close Mostly Higher After Seeing Early Weakness - U.S. Commentary

(RTTNews) - Stocks turned higher over the course of the trading session on Tuesday after moving moderately lower early in the session. With the turnaround, the major averages added to the substantial gains posted in the previous session.

The major averages closed in positive territory but well off their highs of the session. The Dow rose 72.83 points or 0.4 percent to 18,332.43, the Nasdaq advanced 27.32 points or 0.5 percent to 5,193.49 and the S&P 500 climbed 8.01 points or 0.4 percent to 2,139.53.

The rebound by stocks partly reflected optimism about the outcome of the presidential election as voters head to the polls on Election Day.

The race between Democratic nominee Hillary Clinton and Republican rival Donald Trump has been among the most the divisive in history and the outcome could have a significant impact on economic policy.

A number of analysts have suggested that a victory for Clinton will be a near-term positive for the stock markets.

As voters head to the polls, a RealClearPolitics average of recent national polls showed Clinton with a 46.8 percent to 43.6 percent lead over Trump.

However, the national poll numbers may not be indicative of the final result, which will likely come down to several key swing states due to the Electoral College system.

Despite the rebound by the broader markets, shares of Hertz Global (HTZ) closed sharply lower after the rental car company reported weaker than expected third quarter results and lowered its full-year guidance.

Drugstore operator CVS Health (CVS) also posted a steep loss after cutting its full-year profit forecast. The company reported better than expected third quarter earnings but on revenues that missed estimates.

On the other hand, shares of Priceline (PCLN) showed a strong upward move after the travel services company reported third quarter result that exceeded expectations.

Sector News

Biotechnology stocks showed a strong move to the upside on the day, driving the NYSE Arca Biotechnology Index up by 1.2 percent. With the gain, the index climbed further off the four-month closing low it set last Thursday.

Osiris Therapeutics (OSIR), Acadia Pharmaceuticals (ACAD), and Celldex Therapeutics (CLDX) turned in some of the biotech sector's best performances.

Considerable strength also emerged among airline stocks, as reflected by the 1.2 percent gain posted by the NYSE Arca Airline Index The index reached its best closing level in well over a year.

Telecom, trucking, and steel stocks also saw notable strength on the day, while most of the other major sectors showed more modest moves.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Tuesday. Hong Kong's Hang Seng Index rose by 0.5 percent and Australia's All Ordinaries Index edged up by 0.2 percent. However, Japan's Nikkei 225 Index closed just below the unchanged line.

The major European markets also moved to the upside as the day progressed. While the U.K.'s FTSE 100 Index advanced by 0.5 percent, the French CAC 40 Index climbed by 0.4 percent and the German DAX Index crept up by 0.2 percent.

In the bond market, treasuries came under pressure, extending the pullback seen on Monday. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.4 basis points to a five-month closing high of 1.862 percent.

Looking Ahead

Reaction to the election results is likely to dominate trading on Wednesday, overshadowing the latest batch of earnings news.