Stocks have moved significantly higher in morning trading on Tuesday after ending the previous session mostly lower. The major averages have climbed firmly into positive territory, more than offsetting yesterday's losses.
Currently, the major averages are holding on to strong gains. The Dow is up 223.70 points or 0.9 percent at 25,474.25, the Nasdaq is up 74.48 points or 1 percent at 7,505.22 and the S&P 500 is up 22.97 points or 0.8 percent at 2,773.76.
The strength on Wall Street reflects a positive reaction to upbeat earnings news from several big-name companies, with financial giants Goldman Sachs (GS) and Morgan Stanley (MS) reporting third quarter results that beat estimates on both the top and bottom lines.
Healthcare giant Johnson & Johnson (JNJ) also reported better than expected quarterly results, while health insurer UnitedHealth (UNH) reported third quarter results that exceeded expectations and raised its full-year guidance.
Buying interest may also have been generated following the release of positive economic data, including a report from the Federal Reserve showing industrial production increased in line with economist estimates in September.
The report said industrial production rose by 0.3 percent in September after climbing by 0.4 percent in August. The continued increase in production matched expectations.
The Fed said output growth in September was held down slightly by Hurricane Florence but noted the estimated negative effect was less than 0.1 percentage points.
A separate report from the National Association of Home Builders showed an unexpected uptick in homebuilder confidence in the month of October.
The report said the NAHB/Wells Fargo Housing Market Index inched up to 68 in October from 67 in September. Economists had expected the index to come in unchanged.
Biotechnology stocks have shown a significant move to the upside in morning trading, driving the NYSE Arca Biotechnology Index up by 1.9 percent. Healthcare and pharmaceutical stocks are also seeing considerable strength.
The upbeat homebuilder confidence data has also contributed to strength among housing stocks, which are moving higher along with semiconductor, steel, and telecom stocks.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index jumped by 1.3 percent, while China's Shanghai Composite Index slumped by 0.9 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.'s FTSE 100 Index has risen by 0.3 percent, the German DAX Index and the French CAC 40 Index are surging up by 1.2 percent and 1.3 percent, respectively.
In the bond market, treasuries are seeing modest weakness, extending the drop seen over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by nearly a basis point at 3.171 percent.
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