Investing.com - U.S. stocks opened higher on Tuesday, lifted by gains posted in Europe amid indications of a possible rate cut by the European Central Bank.
During early U.S. trade, the Dow Jones Industrial Average rose 0.24%, the S&P 500 index gained 0.32%, while the Nasdaq Composite index added 0.16%.
Stocks found support after ECB President Mario Draghi said the bank would monitor all euro zone economic data in the coming weeks and was ready to act if needed, suggesting that the bank could cut rates further in order to support the euro zone economy.
In a speech in Rome, Draghi said last week’s rate cut by the ECB was due to the economic slowdown in the euro zone affecting core economies and urged governments to make fiscal consolidation a priority.
Financial stocks were broadly higher, as shares in Goldman Sachs climbed 0.59% and JP Morgan rallied 0.95%, while Citigroup and Bank of America jumped 1.05% and 1.40% respectively.
On Monday, Bank of America agreed to pay USD1.6 billion in cash to bond insurer MBIA and will receive the right to buy a 4.9% stake in the bond insurer to resolve long-running litigation.
Among earnings, DirecTV said earnings blew past market expectations, helped by better-than-expected growth in Latin America, sending shares up 4%.
On the downside, BMC Software slid 0.35% following reports the company agreed to be taken private in a USD6.9 billion deal by Bain Capital LLC and Golden Gate Capital.
Also in the tech sector, Microsoft edged down 0.09% after the Financial Times reported that the company is preparing to reverse course over key elements of its Windows 8 operating system, marking one of the most prominent admissions of failure for a new mass-market consumer product.
Among Internet-linked stocks, Google's YouTube was reportedly planning to offer paid subscription channels over the next few weeks, expanding the choices for television viewers beyond traditional pay-TV packages.
The news sent Google shares down 0.30% at the open of the U.S. trading session.
Other stocks in focus included Walt Disney, scheduled to post results after the closing bell.
Across the Atlantic, European stock markets were higher. The EURO STOXX 50 advanced 0.96%, France’s CAC 40 gained 0.76%, Germany's DAX jumped 1.11%, while Britain's FTSE 100 advanced 0.65%.
During the Asian trading session, Hong Kong's Hang Seng Index climbed 0.58%, while Japan’s Nikkei 225 Index surged 3.58%.
During early U.S. trade, the Dow Jones Industrial Average rose 0.24%, the S&P 500 index gained 0.32%, while the Nasdaq Composite index added 0.16%.
Stocks found support after ECB President Mario Draghi said the bank would monitor all euro zone economic data in the coming weeks and was ready to act if needed, suggesting that the bank could cut rates further in order to support the euro zone economy.
In a speech in Rome, Draghi said last week’s rate cut by the ECB was due to the economic slowdown in the euro zone affecting core economies and urged governments to make fiscal consolidation a priority.
Financial stocks were broadly higher, as shares in Goldman Sachs climbed 0.59% and JP Morgan rallied 0.95%, while Citigroup and Bank of America jumped 1.05% and 1.40% respectively.
On Monday, Bank of America agreed to pay USD1.6 billion in cash to bond insurer MBIA and will receive the right to buy a 4.9% stake in the bond insurer to resolve long-running litigation.
Among earnings, DirecTV said earnings blew past market expectations, helped by better-than-expected growth in Latin America, sending shares up 4%.
On the downside, BMC Software slid 0.35% following reports the company agreed to be taken private in a USD6.9 billion deal by Bain Capital LLC and Golden Gate Capital.
Also in the tech sector, Microsoft edged down 0.09% after the Financial Times reported that the company is preparing to reverse course over key elements of its Windows 8 operating system, marking one of the most prominent admissions of failure for a new mass-market consumer product.
Among Internet-linked stocks, Google's YouTube was reportedly planning to offer paid subscription channels over the next few weeks, expanding the choices for television viewers beyond traditional pay-TV packages.
The news sent Google shares down 0.30% at the open of the U.S. trading session.
Other stocks in focus included Walt Disney, scheduled to post results after the closing bell.
Across the Atlantic, European stock markets were higher. The EURO STOXX 50 advanced 0.96%, France’s CAC 40 gained 0.76%, Germany's DAX jumped 1.11%, while Britain's FTSE 100 advanced 0.65%.
During the Asian trading session, Hong Kong's Hang Seng Index climbed 0.58%, while Japan’s Nikkei 225 Index surged 3.58%.