By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- The Dow Jones Industrial Average
pushed into record territory early Tuesday, lifted by
better-than-expected results from J.P. Morgan Chase & Co. and
Goldman Sachs Group Inc.
The S&P 500 (SPX) opened 3.7 points, or 0.2%, higher at
1,980.72. The Dow Jones Industrial Average (DJI) added 42 points,
or 0.3%, to 17,099.72, a day after ending less than 0.1% off its
record close. The Nasdaq Composite (RIXF) began the day 6 points,
or 0.2%, higher at 4,446.92.
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action.
The early gains were also supported by broadly positive economic
reports. The Empire State manufacturing activity picked up in July
to its highest reading in four years. While retail sales in June
rose less than expected, most stores except for auto dealers and
home-improvement outlets boasted an improvement in revenue. U.S.
import prices edged up less than expected.
Investors will focus on the congressional testimony from Federal
Reserve Chairwoman Janet Yellen, which is scheduled to begin at 10
a.m. Eastern.
In earnings news, J.P. Morgan Chase(JPM) reported net income of
$1.46 a share, which included 13 cents a share in legal expenses.
Shares rose 3.5%.
Goldman Sachs(GS) reported second-quarter earnings of $4.10 a
share and revenue of $9.13 billion, beating Wall Street estimates.
Goldman shares rose 1.5%.
Johnson & Johnson (JNJ) boosted its outlook and earnings
topped forecasts, however the stock fell 1%.
Yahoo Inc. (YHOO) and Intel Corp. (INTC) are both due to report
after the close. Read more about the day's notable movers here.
Economic data: broadly positive
* The Empire State manufacturing survey: 25.6 in July, up from
19.3 in June
* Sales at U.S. retailers rose to a seasonally adjusted 0.2% in
June, or by 0.4% excluding the auto sector.
* The prices paid for goods imported into the U.S. edged up 0.1%
in June, largely because of higher fuel costs by the smallest
amount since.
* Fed Chairwoman Janet Yellen will give testimony to Congress on
the economy and monetary policy on Tuesday and Wednesday.
Gold recovers, pound rallies
Asian markets did build on those gains, with the Nikkei 225
index settling at a more than one-week high. Gold(GCU4) was also
higher after Monday's heavy losses, gaining $6.10, while oil(CLQ4)
was pushing lower.
The German ZEW economic-sentiment reading on Tuesday fell far
short of expectations, which weighed on Europe stocks and the euro
(EURUSD). The British pound(GBPUSD) rallied after U.K. inflation
inched closer to the Bank of England's 2% target.
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