By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks opened higher Tuesday with
modest gains pushing the Dow Jones Industrial Average above 17,000,
thanks to prices gains in Merck & Co and Pfizer Inc following
better-than-expected quarterly results.
The S&P 500 (SPX) opened up 3 points, or 0.2%, at 1,981. The
Dow Jones Industrial Average (DJI) added 30 points, or 0.2%, to
17,012.09. The Nasdaq Composite (RIXF) began the session with a
gain of 10 points, or 0.2%, to 4,455.43.
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action.
A snapshot of consumer confidence from the Conference Board is
due at 10 a.m. Eastern. The reading is expected to fall to 85.0 in
July, after a jump in June to the index's highest level in six and
a half years. Confidence still remains well below pre-recession
levels.
Earlier, a report from the Case-Shiller 20-city composite index
showed U.S. house prices rose in May, with every city showing
gains. Prices fell on a seasonally adjusted basis, however.
Year-over-year growth also slowed down.
Data released Monday showed pending U.S. homes sales fell 1.1%
in June, the first decline in four months. That report "confirmed
Fed Chair Yellen's remarks before the Senate Banking committee
earlier this month about the overall slowdown in the housing
sector," wrote Marshall Gittler, head of global FX strategy at
IronFX, on Tuesday.
Yellen will lead monetary policy makers in their two-day meeting
that begins Tuesday morning.
Ahead of the opening bell, shares of Merck & Co. (MRK) -- a
component of the Dow Jones Industrial Average (DJI) -- rose 1%
after the drug maker's adjusted earnings and sales surpassed
expectations.
Shares of fellow Dow component Pfizer Inc. (PFE) gained 0.8%
after the pharmaceutical company's second-quarter results came in
ahead of Wall Street's targets.
Wynn Resorts Ltd. (WYNN) shares dropped 4.2%, after earnings per
share beat analysts' expectations, but revenue fell short of
them.
Aetna (AET) opened 1.9% lower even as the health insurer raised
its 2014 operating earnings projection based on improvement in
second-quarter results from the year-earlier period.
Logistics company United Parcel Service Inc. (UPS) dropped 2.9%
after missing forecasts and lowering its guidance.
Stock in Herbalife Ltd. (HLF) fell 12%, extending losses from
late Monday when the nutritional supplements marketer posted
quarterly results that missed Wall Street's targets.
Investors will also keep watch for any update about further
sanctions that may be imposed against Russia by the European Union
related to its conflict with Ukraine.
After the regular session ends, Twitter Inc. (TWTR) is slated to
release second-quarter results.
In Asia, most major stock markets ended higher, with Japan's
Nikkei Average up 0.6%. In Europe, the U.K.'s FTSE 100 edged higher
on upbeat earnings reports.
Oil prices (CLU4) turned slightly lower, while gold (GCU4) rose
nearly $5. The U.S. dollar index (DXY), which measures the
greenback against a basket of six other currencies, rose to 81.061
from 81.025 on Monday.
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