Shawshank, VA 9/7/2011 (PennyPayDay) – Stocks moved sharply higher at the start of trading on Wednesday, regaining some ground after closing lower in the three previous sessions. The major averages climbed firmly into positive territory, partly offsetting the recent losses.The major averages have seen some further upside in the past few minutes, reaching new highs for the young session. The Dow is up 155.30 points or 1.4 percent at 11,294.60, the Nasdaq is up 44.34 points or 1.8 percent at 2,518.17 and the S&P 500 is up 18.62 points or 1.6 percent at 1,183.86.
The early strength on Wall Street is partly due to developments overseas that have contributed to rallies by the global stock markets. Stocks in the Asia-Pacific region saw considerable strength amid reports suggesting that China and India are considering easing monetary policy in the near future.
Peter Boockvar, equity strategist at Miller Tabak, said, "The possibility that both China and India may take their foot off the tightening pedal helped lift their stock markets and the rest of Asia followed."
Buying interest has also been generated by news that Germany's high court ruled that the country's contributions to the bailouts of Greece and other European countries are constitutional. However, the court said that the German parliament should be consulted regarding further aid.
Semiconductor stocks are seeing considerable strength in early trading, driving the Philadelphia Semiconductor Index up by 3.6 percent. Graphics chip maker Nvidia (NVDA) is leading the sector higher after providing upbeat revenue guidance.
Notable strength has also emerged among steel, networking, and telecom stocks, which turned in some of the market's worst performances in the previous session. Most of the other major sectors have also moved to the upside, although gold stocks are bucking the uptrend.
Among individual stocks, shares of Yahoo! (YHOO) are up by 6.9 percent after the internet media giant announced that Carol Bartz has been removed from her role as Chief Executive Officer. Yahoo said Timothy Morse has been named interim CEO.
Financial services giant Bank of America (BAC) is also trading higher after announcing a reorganization of its management, appointing David Darnell and Tom Montag to the newly-created positions of co-chief operating officers.
Bank of America noted that Joe Price, president of Global Consumer and Small Business Banking, and Sallie Krawcheck, president of Global Wealth and Investment Management, will be leaving the company.
Later in the day, trading could be impacted by the release of the Federal Reserve's Beige Book. The report, a compilation of anecdotal evidence on economic conditions from each of the 12 Fed districts, is due to be released at 2 pm ET.
As mentioned above, stock markets across the Asia-Pacific region showed a notable move to the upside on Wednesday. Japan's Nikkei 225 Index surged up by 2 percent, while Hong Kong's Hang Seng Index jumped by 1.7 percent.
The major European markets are also seeing significant strength on the day. The U.K.'s FTSE 100 Index is advancing by 2.1 percent, while the French CAC 40 Index and the German DAX Index have shot up by 2.8 percent and 3.3 percent, respectively.
In the bond market, treasuries have come under pressure amid the rally on Wall Street. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its prices, is up by 4.7 basis points at 2.026 percent after ending the previous session at a record closing low.
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