Stocks are seeing modest strength in morning trading on Wednesday after ending the previous session roughly flat. The major averages have all moved to the upside following the mixed performance seen on Tuesday.
Currently, the major averages are off their highs of the session but holding on to modest gains. The Dow is up 40.42 points or 0.2 percent at 24,400.63, the Nasdaq is up 15.33 points or 0.2 percent at 7,282.23 and the S&P 500 is up 9.69 points or 0.4 percent at 2,681.61.
The strength on Wall Street is partly due to a sharp increase by the price of crude oil following President Donald Trump's decision to withdraw from the Iran nuclear deal.
Trump harshly criticized the nuclear agreement with Iran in remarks from the White House and signed a memorandum re-imposing sanctions on Iran.
"I am announcing today that the United States will withdraw from the Iran nuclear deal," Trump said. "We will be instituting the highest level of economic sanctions."
"The United States no longer makes empty threats," added Trump, who criticized the deal throughout his presidential campaign. "When I make promises, I keep them."
Energy stocks have moved significantly higher along with the price of crude oil, as crude for June delivery is jumping $1.83 to $70.89 a barrel.
Reflecting the strength in the energy sector, the Philadelphia Oil Service Index is up by 3.8 percent, the NYSE Arca Natural Gas Index is up by 3.2 percent and the NYSE Arca Oil & Gas Index is up by 3.1 percent.
Steel and chemical stocks are also seeing some strength on the day, while notable weakness is visible among housing stocks.
On the U.S. economic front, the Labor Department released a report showing a modest uptick in producer prices in the month of April.
The Labor Department said its producer price index for final demand inched up by 0.1 percent in April after rising by 0.3 percent in March. Economists had expected prices to edge up by 0.2 percent.
Excluding food and energy prices, core producer prices rose by 0.2 percent in April after climbing by 0.3 percent in the previous month. The increase in core prices matched economist estimates.
In overseas trading, stock across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. While Japan's Nikkei 225 Index fell by 0.4 percent, Hong Kong's Hang Seng Index rose by 0.4 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.'s FTSE 100 Index has jumped by 1 percent, the German DAX Index and the French CAC 40 Index are both up by 0.1 percent.
In the bond market, treasuries are extending the downward move seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.6 basis points to 2.995 percent.
by P2PNews Staff Writer