Upward Momentum May Extend Rally On Wall Street

The major U.S. index futures are pointing to a higher opening on Wednesday, with stocks likely to extend the upward trend seen in recent sessions.

The upward momentum on Wall Street comes as traders digest quarterly results from well-known companies such as General Electric (GE).

Traders may also continue to react positively to news that lawmakers managed to re-open the government earlier this week after a relatively brief shutdown.

Following the strength seen on Monday, stocks saw some further upside during trading on Tuesday. The advance on the day lifted the Nasdaq and the S&P 500 to new record closing highs.

The major averages ended the session mixed. While the Dow edged down 3.79 points or less than a tenth of a percent to 26,210.81, the Nasdaq climbed 52.26 points or 0.7 percent to 7,460.29 and the S&P 500 rose 6.16 points or 0.2 percent to 2,839.13.

The strength on Wall Street came as lawmakers managed to re-open the government following a brief shutdown, passing a stopgap bill funding the government until February 8th.

Upbeat earnings news has also generated buying interest, with Dow components Johnson & Johnson (JNJ), Procter & Gamble (PG) and Travelers (TRV) reporting better than expected quarterly results.

Trading activity was somewhat subdued, however, as a lack of major U.S. economic news kept some traders on the sidelines.

In the coming days, traders are likely to keep an eye on reports on new and existing home sales and durable goods orders.

Gold stocks turned in some of the market’s best performances on the day, driving the NYSE Arca Gold Bugs Index up by 2.6 percent. The strength among gold stocks came amid an increase by the price of the precious metal.

Computer hardware, biotechnology and interent stocks also saw considerable strength, contributing to the notable advance by the tech-heavy Nasdaq.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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