RTTNews - After opening little changed, stocks have shown a notable move to the upside over the first few minutes of trading on Wednesday. The major averages have all climbed into positive territory after closing lower in the two previous sessions.
Significant strength has emerged in the housing sector, with Toll Brothers (TOL) leading the way higher after the luxury homebuilder reported an increase in signed contracts in the third quarter. Airline, networking, and real estate stocks are also posting notable gains.
On the economic front, the Commerce Department released a report showing that the U.S. trade deficit widened in the month of June compared to the previous month, although the deficit for the month still came in narrower than economists had been anticipating.
With imports increasing at a faster pace than exports, the report showed that the trade deficit widened to $27.0 billion in June from $26.0 billion in May. Economists had been expecting a somewhat more significant increase in the size of the deficit to $28.7 billion.
The increase in the size of the deficit came as the value of imports increased by 2.3 percent to $152.8 billion in June from $149.3 billion in May. This outpaced the increase in the value of exports, which rose 1.9 percent to $125.8 billion from $123.4 billion in the previous month.
Most traders are looking ahead to the Federal Reserve's announcement of its interest rate decision. While the Fed is widely expected to leave rates unchanged, traders will keep a close eye on the accompanying statement.
The major averages are currently posting moderate gains, just off their highs for the young session. The Dow is currently up 34.16 at 9,275.61, the Nasdaq is up 9.01 at 1,978.74 and the S&P 500 is up 3.56 at 997.91.
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