News Column

Major Averages Moving To The Upside, S&P 500 Reaches New Record High

May 27, 2014

WASHINGTON (Alliance News) - With traders reacting positively to the latest batch of US economic data, stocks have moved mostly higher in early trading on Tuesday. The major averages have all climbed into positive territory, with the S&P 500 reaching a new record intraday high.

The early strength on Wall Street is partly due to the release of a report from the Commerce Department showing an unexpected increase in durable goods orders in the month of April.

The report said durable goods orders increased by 0.8% in April after surging up by an upwardly revised 3.6% in March. The continued growth surprised economists, who had expected orders to drop by 0.7%.

Positive sentiment has also been generated by a separate report from the Conference Board showing that consumer confidence improved in line with economist estimates in the month of May.

Biotechnology stocks have shown a strong move to the upside in early trading, driving the NYSE Arca Biotechnology Index up by 1.6%. With the gain, the index has reached its best intraday level in well over a month.

Significant strength has also emerged among networking stocks, as reflected by the 1.3% gain being posted by the NYSE Arca Networking Index. The index has also reached a one-month high.

Financial, internet, and computer hardware stocks are also seeing early strength, while gold stocks have come under pressure amid a decrease by the price of the precious metal.

The major averages have seen some further upside in early trading, reaching new highs for the young session. The Dow is up 67.59 points or 0.4% at 16,673.86, the Nasdaq is up 36.46 points or 0.9% at 4,222.27 and the S&P 500 is up 9.43 points or 0.5% at 1,909.96.

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Source: Alliance News

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