Investing.com - U.S. stocks opened higher on Tuesday, as market sentiment remained supported by upbeat Chinese manufacturing data and as markets eyed the release of U.S. data later in the trading session.
During early U.S. trade, the Dow 30 advanced 0.54%, the S&P 500 rose 0.31%, while the NASDAQ Composite gained 0.47%.
Sentiment improved after data showed that China’s official manufacturing purchasing managers’ index rose to a six-month high of 51.0 in June, in line with expectations and up from 50.8 in May.
Meanwhile, China’s final HSBC Purchasing Managers Index came in at 50.7, weaker than a preliminary reading of 50.8 but higher than May's 49.4 figure.
U.S. equities also remained supported after data last week showing a 2.9% economic contraction in the first quarter bolstered expectations that the Fed will keep rates on hold for an extended period.
Speaking Monday, San Francisco Fed President John Williams underlined this view, saying the bank will probably need to hold interest rates near zero for at least another year, despite signs that the economy is improving.
General Motors (NYSE:GM) jumped 1.57% after the auto manufacturer said it was recalling another 7.6 million vehicles.
The news came only a few hours after lawyer Kenneth Feinberg finished announcing terms of a broad plan for GM to compensate victims of an earlier ignition recall of 2.59 million small cars.
Yahoo! Inc (NASDAQ:YHOO) added to gains, up 1%, even as Piper Jaffray upgraded the internet search engine to "overweight" from "neutral" late Monday.
Elsewhere in the Internet sector, Twitter (NYSE:TWTR) surged 4.14% after the company agreed to buy mobile-advertising company TapCommerce, seeking to make more money outside of its main microblogging service.
On the downside, American Apparel (NYSE:APP) shares plummeted 5.52% after the clothing retailer turned back a request by ousted Chief Executive Dov Charney for an investor meeting.
Across the Atlantic, European stock markets were higher. The DJ Euro Stoxx 50 rose 0.30%, France’s CAC 40 gained 0.63%, Germany's DAX added 0.21%, while Britain's FTSE 100 climbed 0.72%.
During the Asian trading session, Hong Kong's Hang Seng edged down 0.13%, while Japan’s Nikkei 225 jumped 1.08%.
Later in the day, the Institute of Supply Management was to publish a report on U.S. manufacturing activity.