By Donna Kardos Yesalavich, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks opened slightly higher Tuesday as investors were encouraged by a bigger-than-expected rise in U.S. retail sales for November, but a disappointing earnings report from Best Buy limited the gains.

The Dow Jones Industrial Average (DJI) rose 30 points, or 0.3%, to 11459. Among its top performers, Walt Disney (DIS) added 0.7% while Bank of America (BAC) climbed 0.6% and Caterpillar (CAT) rose 0.5%.

The Nasdaq Composite (RIXF) rose 0.2% to 2630. The Standard & Poor's 500 index (SPX) added 0.2% to 1243, with its health-care sector in the lead. The sector was boosted by a 4.7% increase in Amgen (AMGN) after the biotechnology firm said a study of its bone drug Xgeva showed it helped prostate-cancer patients live longer without the disease spreading to their bones.

Consumer stocks were also strong, with Hasbro (HAS) rising 1%, Target (TGT) advancing 0.7% and Tiffany adding 0.4%. Lifting the sector, the Commerce Department reported a 0.8% increase in U.S. retail sales for November, topping economists' expectations for a 0.5% rise. Auto and parts sales fell by 0.8% in November, after surging 5.6% during October. But excluding autos, retail sales in November rose 1.2%, topping expectations for a gain of 0.7%.

While the retail sales provided some encouragement, investors remain cautious on the outlook for the retail sector after Best Buy (BBY) issued a dour report for the quarter ended Nov. 27, which included Black Friday. Best Buy's same-store sales fell 3.3% in the quarter, including a 5% drop in the U.S. Its earnings came in well below analysts' estimates as revenue unexpectedly fell. The consumer electronics retailer also cut its earnings view for the year. Best Buy's shares tumbled 14%.

Separate data showed U.S. producer prices increased more than expected last month, pushed higher by rising energy and food costs, while underlying wholesale inflation remained tame. The index of producer prices, which measures how much manufacturers and wholesalers pay for goods and materials, rose a seasonally adjusted 0.8% in November from October, the Labor Department said. It was the biggest gain since March and the fifth monthly increase in a row.

Tuesday's activity comes as investors await the Federal Open Market Committee's latest policy statement, due at 2:15 p.m. EST. The market isn't expecting any changes in the FOMC's policy direction, but will keep a close eye on the language it uses to assess the economy and how its $600 billion stimulus package is faring so far.

The euro rose to $1.3398, from $1.3392 late Monday, as data showed German economic expectations improved for the second consecutive month in December, allaying immediate concerns about a deepening debt crisis in the euro zone's periphery. The ZEW think-tank said its closely-watched economic expectations index increased to 4.3 points in December, up from 1.8 points in November and above economists' forecasts for a reading of 4.0 points.

The U.S. Dollar Index (DXY), tracking the U.S. currency against a basket of six others, edged up 0.1%. Treasurys fell, lifting the yield on the 10-year note up to 3.35%. Crude-oil futures slipped while gold futures also declined.

Among stocks in focus, HCP (HCP) slipped 1% after the real-estate investment trust said it will buy all of the real-estate assets of privately owned nursing-home operator HCR ManorCare for $6.1 billion in a cash-and-stock deal.

Sanderson Farms (SAFM) rose 2.5%. The poultry producer's fiscal fourth-quarter earnings more than doubled as average market prices rose 3.2% and margins improved.