Stocks Remain Mostly Positive, Adding To Recent Gains - U.S. Commentary

(RTTNews) - Extending the upward trend seen over the past several weeks, stocks have moved mostly higher over the course of the trading session on Wednesday. The Dow and the S&P 500 have once again set new record highs, while the tech-heavy Nasdaq has reached its best levels of 2016.

Currently, the major averages are just off their best levels of the day. The Dow is up 51.33 points or 0.3 percent at 18,610.34, the Nasdaq is up 54.40 points or 1.1 percent at 5,090.77 and the S&P 500 is up 10.17 points or 0.5 percent at 2,173.95.

The strength on Wall Street partly reflects a positive reaction to the latest earnings news from big-name companies such as Microsoft (MSFT) and Morgan Stanley (MS).

Shares of Microsoft have shown a substantial upward move after the software giant released its fiscal fourth quarter results after the close of trading on Tuesday.

Microsoft is currently up by 6.9 percent after reporting better than expected earnings and revenues due in part to strong cloud business.

Financial giant Morgan Stanley has also moved to the upside after reporting second quarter results that exceeded analyst estimates.

Looking ahead, American Express (AXP), eBay (EBAY), and Intel (INTC) are among the big-name companies due to release their quarterly results after the close of today's trading.

Among individual stocks, shares of Cintas (CTAS) have moved sharply higher on the day after the uniform maker reported better than expected fourth quarter results and provided upbeat guidance.

Household products maker Tupperware (TUP) has also shown a strong move to the upside after reporting second quarter results that exceeded analyst estimates.

Meanwhile, shares of Halliburton (HAL) have moved lower after the oil service giant reported a second quarter loss due in part to the breakup fee for its failed deal to buy Baker Hughes (BHI).

Sector News

With Microsoft leading the way higher, software stocks are seeing considerable strength on the day. The Dow Jones Software Index has surged up by 3.7 percent to its highest levels in over sixteen years.

Along with Microsoft, German software developer SAP (SAP) is also posting a standout gain after reporting stronger than expected second quarter earnings growth.

Significant strength has also emerged among biotechnology stocks, as reflected by the 2.1 percent gain being posted by the NYSE Arca Biotechnology Index. Acadia Pharmaceuticals (ACAD) is posting a standout gain.

Semiconductor, networking, and internet stocks have also shown strong moves to the upside, contributing to the jump by the tech-heavy Nasdaq.

On the other hand, gold stocks have come under pressure on the day, dragging the NYSE Arca Gold Bugs Index down by 4 percent. The weakness in the sector comes as gold for August delivery is slumping $12.10 to $1,320.20 an ounce.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Wednesday. Japan's Nikkei 225 Index dipped by 0.3 percent, while Hong Kong's Hang Seng Index jumped by 1 percent.

Meanwhile, the major European markets all moved to the upside on the day. While the U.K.'s FTSE 100 Index rose by 0.5 percent, the French CAC 40 Index surged up by 1.2 percent and the German DAX Index spiked by 1.6 percent.

In the bond market, treasuries are offsetting yesterday's gains amid the strength on Wall Street. As a result, the yield on the benchmark ten-year note, which moves opposite of its, is up by 3.4 basis points at 1.592 percent.