After showing a strong upward move at the open, stocks have seen continued strength throughout most of morning trading on Tuesday. The major averages have remained firmly positive, partly offsetting the steep losses posted in the previous session.
The rebound by the broader markets comes as traders are using Monday's weakness as a buying opportunity despite the release of some weaker than expected economic data.
Banking stocks are posting particularly strong gains after helping to lead the markets lower on Monday, with the Kbw Bank Index currently up 5.3 percent after ending the previous session down more than 10 percent.
Significant strength is also visible among steel, real estate, and brokerage, which are also rebounding after posting steep losses on Monday. Health insurance stocks are also posting notable gains, driving the Morgan Stanley Healthcare Payor Index up 4.1 percent.
On the other hand, housing stocks are bucking the uptrend by the broader markets, with Lennar (LEN) leading the sector lower after the homebuilder reported a wider first quarter loss. Data showing a record drop in home prices may also be contributing to the weakness in the sector.
The major averages are currently posting strong gains, hovering near their best levels of the day. The Dow is currently up 113.90 at 7,635.92, the Nasdaq is up 24.91 at 1,526.71 and the S&P 500 is up 11.40 at 798.93.
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