Investing.com - U.S. stocks opened higher on Tuesday, as market sentiment found support following positive U.S. economic data and amid speculation over a 'soft' bailout for Spain.
During early U.S. trade, the Dow Jones Industrial Average climbed 0.54%, the S&P 500 index advanced 0.51%, while the Nasdaq Composite index rose 0.21%.
The U.S. Labor Department said consumer prices rose by 0.6% in September, above expectations for a 0.5% gain on the back of higher gasoline prices.
Consumer prices rose at an annualized rate of 2.0% last month, compared to expectations for a 1.9% increase and up from 1.7% in August.
Sentiment broadly strengthened after two senior German lawmakers indicated that they would support a Spanish application for a ‘precautionary credit line’ from the European Stability Mechanism, the euro zone's permanent bailout fund.
On Monday, Spanish government officials said they were exploring the option of requesting a credit line from the ESM, in order to satisfy the terms of the European Central Bank’s bond buying program, but then not using it, instead waiting for borrowing costs to fall.
In the financial sector, Goldman Sachs slipped 0.18%, even as it reported quarterly results that beat analysts' expectations and increased its dividend.
Citigroup was also on the downside, as shares fell 0.16%, after CEO Vikram Pandit announced he is stepping down from his position at the investment bank. President and Chief Operating Officer John Havens also resigned.
Meanwhile, counterparts JP Morgan and Bank of America posted strong gains, climbing 0.45% and 0.74% respectively.
Elsewhere, Johnson & Johnson advanced 0.85% after the drugmaker reported quarterly results that beat analysts' expectations.
Also in earnings news, shares in Coca-Cola were down 0.81% after the company reported earnings that matched Wall Street expectations, but revenue fell slightly short, hurt by the stronger U.S. dollar.
The biggest U.S. health-insurance company, UnitedHealth added to losses, as shares dropped 0.85% at the open, after reporting earnings that were higher than a forecast the company gave earlier this month. The company also raised its 2012 profit forecast on Monday.
Other stocks in focus included Intel, IBM and CSX, expected to post earnings after the closing bell.
Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 soared 1.97%, France’s CAC 40 rallied 1.52%, Germany's DAX advanced 1.50%, while Britain's FTSE 100 jumped 1.05%.
During the Asian trading session, Hong Kong's Hang Seng Index added 0.28%, while Japan’s Nikkei 225 Index surged 1.44%.
Also Tuesday, the Federal Reserve said in a report that industrial production in the U.S. rose more-than-expected in September, ticking up 0.4% after 1.4% decline the previous month.
Analysts had expected industrial production to rise 0.2% in September.
During early U.S. trade, the Dow Jones Industrial Average climbed 0.54%, the S&P 500 index advanced 0.51%, while the Nasdaq Composite index rose 0.21%.
The U.S. Labor Department said consumer prices rose by 0.6% in September, above expectations for a 0.5% gain on the back of higher gasoline prices.
Consumer prices rose at an annualized rate of 2.0% last month, compared to expectations for a 1.9% increase and up from 1.7% in August.
Sentiment broadly strengthened after two senior German lawmakers indicated that they would support a Spanish application for a ‘precautionary credit line’ from the European Stability Mechanism, the euro zone's permanent bailout fund.
On Monday, Spanish government officials said they were exploring the option of requesting a credit line from the ESM, in order to satisfy the terms of the European Central Bank’s bond buying program, but then not using it, instead waiting for borrowing costs to fall.
In the financial sector, Goldman Sachs slipped 0.18%, even as it reported quarterly results that beat analysts' expectations and increased its dividend.
Citigroup was also on the downside, as shares fell 0.16%, after CEO Vikram Pandit announced he is stepping down from his position at the investment bank. President and Chief Operating Officer John Havens also resigned.
Meanwhile, counterparts JP Morgan and Bank of America posted strong gains, climbing 0.45% and 0.74% respectively.
Elsewhere, Johnson & Johnson advanced 0.85% after the drugmaker reported quarterly results that beat analysts' expectations.
Also in earnings news, shares in Coca-Cola were down 0.81% after the company reported earnings that matched Wall Street expectations, but revenue fell slightly short, hurt by the stronger U.S. dollar.
The biggest U.S. health-insurance company, UnitedHealth added to losses, as shares dropped 0.85% at the open, after reporting earnings that were higher than a forecast the company gave earlier this month. The company also raised its 2012 profit forecast on Monday.
Other stocks in focus included Intel, IBM and CSX, expected to post earnings after the closing bell.
Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 soared 1.97%, France’s CAC 40 rallied 1.52%, Germany's DAX advanced 1.50%, while Britain's FTSE 100 jumped 1.05%.
During the Asian trading session, Hong Kong's Hang Seng Index added 0.28%, while Japan’s Nikkei 225 Index surged 1.44%.
Also Tuesday, the Federal Reserve said in a report that industrial production in the U.S. rose more-than-expected in September, ticking up 0.4% after 1.4% decline the previous month.
Analysts had expected industrial production to rise 0.2% in September.