Stocks rising in afternoon trading as Dow hits record high

Profit taking may also be contributing to the pullback by stocks, as the Dow and the S&P 500 reached record closing highs in the previous session.

The benchmark closed at a record 2,137.16, overtaking the previous high of 2,130.82 hit on May 21, 2015.

Most index funds, a favorite of investors, are pegged to the S&P 500, not the Dow. The S&P 500 secured a record close of 2,152.14, its second day of record closes. The Nasdaq composite rose 34 points, or 0.7 percent, to 5,022.

Market analyst Colin Cieszynski said the recent surges in North American stock markets is being spurred by more perceived stability in the two major economies of Britain and Japan.

All of Wall Street's major stock indexes finished in positive territory on Tuesday, with the Dow Jones joining the S&P 500 at all-time highs. Energy companies are falling sharply along with the price of oil. Citigroup gained 93 cents, or 2.7%, to 43.44 dollars. The rally coincided with a sell-off in Treasury bonds, which investors had piled into in a flight to safety after Brexit, sending bond yields to record lows. Bond yields tend to fall when demand for bonds rises, which can indicate that investors are seeking safety.

"I wish we can be celebrating, but it's a little disconcerting", said Rob Bartenstein, chief executive of Kestra Private Wealth Services.

"Once you break convincingly above the old high, you get the momentum buying coming in", said Michael Jones, chief investment officer of RiverFront Investment Group in Richmond, Virginia. With this, I feel that the 2125 level now is going to act as a bit of a "spongy floor", as it could extend somewhere down towards the 2100 level.

Sectors that investors tend to favor when they're nervous, including utilities, phone companies and makers of consumer staples, all fell as investors moved money out of lower-risk assets. Aluminum company Alcoa kicked off reporting season on a strong note, beating analyst expectations by reporting strong revenue and earnings.

Among stocks making big moves, Juno Therapeutics soared $2.63, or 9.5 percent, to $30.42 after regulators said its leukemia drug trials can continue.

The S&P 500 is up 108.20 points, or 5.3 percent.

SEAGATE SURGE: Seagate Technology jumped $4.45, or 19 percent, to $28.54 after forecasting strong sales.

Significant strength was also visible among electronic storage stocks, as reflected by the 4.6 percent gain posted by the NYSE Arca Disk Drive Index.

In Japan, the Nikkei 225 index jumped 2.5%, a day after soaring 4%. Investors are betting that he'll keep flooding the market with money by expanding bond purchases.

EUROPEAN GAINS: France's CAC 40 rose 1.6 percent and Germany's DAX added 1.3 percent. Britain's FTSE 100 was flat.

Shares of Nintendo jumped 12.7 percent in Tokyo, fueled by the craze for "Pokemon Go", a smartphone game that's become the top grossing app in the iPhone store less than a week after its release in the U.S., Australia and New Zealand. On Tuesday, the yield on the 10-year Treasury increased slightly to 1.53 percent, up from the 1.37 percent yield reached on Friday.

Spot gold recovered from its lowest in almost two weeks, and was last up 0.85 percent at $1,342.61 an ounce.

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