Currently, the major averages are posting modest gains, near their best levels of the day. The Dow is up 24.02 points or 0.1% at 16,805.03, the Nasdaq is up 19.38 points or 0.5% at 4,340.48 and the S&P 500 is up 3.43 points or 0.2% at 1,941.21.
The initial weakness on
The report said housing starts fell 6.5% to an annual rate of 1.001 million in May after jumping 12.7% to a rate of 1.071 million in April. Economists had expected starts to drop to a rate of 1.030 million.
A separate report from the
The consumer price index rose by 0.4% in May, the biggest monthly increase since February of 2013. Economists had expected consumer prices to edge up by about 0.2%.
Core consumer prices, which exclude food and energy prices, increased 0.3% in May after rising by 0.2% in the previous month. Core prices had also been expected to tick up by 0.2%.
Worries about the ongoing conflict in
Nonetheless, selling pressure waned not long after the start of trading, as traders seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement Wednesday afternoon.
While the Fed is widely expected to announce another
The subsequent recovery by the markets is partly due to strength that has emerged among brokerage stocks. The NYSE Arca Broker/Dealer Index has surged up by 1.6% amid strong gains by E*Trade (ETFC) and
Banking, internet, and airline stocks have also moved to the upside, although buying interest has remained somewhat subdued.
In overseas trading, stock markets across the
Meanwhile, the major European markets have all moved to the upside on the day. While the
In the bond market, treasuries have come under pressure amid concerns about the outlook for inflation. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.9 basis points at 2.646%.
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