Forexpros – U.S. stocks opened higher on Tuesday, as better-than-expected U.S. reports eased concerns over the outlook for growth in the world’s leading economy, although a string of mixed euro zone data prompted investors to remain cautious.
During early U.S. trade, the Dow Jones Industrial Average rose 0.21%, the S&P 500 index advanced 0.29%, while the Nasdaq Composite index climbed 0.41%.
Official data showed that retail sales in the U.S. rose for the first time in four months in July, gaining 0.8% after a 0.7% drop the previous month and beating expectations for a 0.3% increase.
Core retail sales, which exclude automobiles, rose 0.8%, more than the expected 0.4% increase and following a 0.8% decline in June.
A separate report showed that U.S. producer prices rose more-than-expected in July, adding 0.3%, against expectations for a 0.2% rise.
Among earnings, Home Depot surged 2.44%, after reporting a higher-than-expected quarterly profit, as the world’s largest home improvement chain kept a tight lid on costs to offset weakness in sales.
Michael Kors skyrocketed 13.79% after the apparel retailer posted better-than-expected earnings and raised its full-year earnings forecast.
Meanwhile, department-store chain Saks climbed 3.13% after it posted a narrower-than-expected quarterly loss and maintained its revenue forecast for the second half of the fiscal year.
On the downside, Groupon saw shares dive 21.61%, after the daily-deals site missed sales expectations and handed in a cautious earnings outlook.
The company’s Chief Financial Officer Jason Child said Europe’s weak economy and currency fluctuations dented results. He also said Groupon is working to improve its performance in that region.
In the financial sector, U.S. lenders tracked their European counterparts higher, led by JP Morgan 1.35%, and closely followed by Goldman Sachs, whose shares jumped 1.12%, while Bank of America and Citigroup rallied 1.04% and 0.80% respectively.
Separately, Standard Chartered’s Chief Executive Peter Sands was reported to have arrived in New York on Monday to take personal control of the U.K. bank’s attempts to reach a settlement with U.S. regulators over allegations it hid transactions involving Iran.
Across the Atlantic, European stock markets were higher. The EURO STOXX 50 rose 0.33%, France’s CAC 40 advanced 0.41%, Germany’s DAX rallied 0.71%, while Britain’s FTSE 100 rose 0.35%.
During the Asian trading session, Hong Kong’s Hang Seng Index jumped 1.05%, while Japan’s Nikkei 225 Index climbed 0.5%.
Earlier Tuesday, official data showed that the euro zone economy contracted by 0.2% in the three months to June, in line with expectations.
Germany’s economy expanded by 0.3% in the second quarter, slightly better than expectations for 0.2% growth, while France’s economy stagnated, beating expectations for a 0.1% contraction.
Meanwhile, the ZEW Centre for Economic Research said that its index of German economic sentiment came in at minus 25.5 for August, the lowest level of 2012, down from July’s reading of minus 19.6 and defying expectations for a reading of minus 19.3.
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