U.S. stocks opened higher on Tuesday, continuing momentum from Monday as investors eyed a slew of earnings reports and oil continued to hold near recent highs.
In “the absence of economic news investors are focused on earnings today,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “That’s adding technical support to the market.”
He said it would be “interesting to see if averages can move toward record highs again.”
However, analysts are concerned that earnings have mostly beat expectations while missing on revenue.
“I think the trend is clear. The strong dollar and mediocre global growth are having an impact,” said Peter Boockvar, chief market analyst at The Lindsey Group.
DuPont earned an adjusted $1.34 per share for the first quarter, 5 cents above estimates, though revenue was below forecasts. DuPont said quarterly results were impacted negatively by 25 cents from the stronger dollar. Additionally, DuPont also announced an increase in its quarterly dividend by 4 percent to 59 cents per share.
United Technologies beat estimates by 13 cents with adjusted quarterly profit of $1.58 per share, with revenue slightly below forecasts. UTC said it had a good start to the year despite ongoing headwinds from currency effects.
Kimberly-Clark reported adjusted quarterly profit of $1.42 per share, 9 cents above estimates, with revenue also above forecasts. The personal care products maker also warned that currency effects will cut its 2015 operating profit by 10 to 11 percent.
Verizon beat forecasts by 7 cents with quarterly profit of $1.02 per share, though revenue fell slightly short. Verizon’s wireless operation also added 565,000 subscribers in the quarter compared to a year earlier.
IBM reported adjusted quarterly profit of $2.91 per share, 11 cents above estimates. Revenue was essentially in line with estimates, though it did fall for the 12th straight quarter as IBM continues its transformation toward cloud-based businesses.
Hormel said its turkey supply chain has been significantly disrupted due to avian flu outbreaks in Minnesota and Wisconsin. Hormel is sticking with its prior fiscal 2015 earnings guidance, but did say it expects results toward the lower end of its projected range.
Oil continued to trade near highs amid futures expiration on Tuesday afternoon and continued concerns about tension in Yemen.
U.S. stocks closed sharply higher on Monday, after China’s central bank announced unexpected stimulus measures.
On Tuesday, Asian and European markets rose in early trade as investors reacted to a slew of corporate earnings reports.
CNBC’s Peter Schacknow contributed to this report
On tap this week:
Earnings: Amgen, Yahoo, Broadcom, Chipotle Mexican Grill, Discover Fincl., Intuitive Surgical, Stryker, VMWare, Yum Brands
Earnings: Boeing, Coca-Cola, McDonald’s, AT&T, Facebook, eBay,Petrobras, Qualcomm, F5 Networks, Six Flags, Ryder System, Angie’s List, T. Rowe Price, Abbott Labs, EMC, Bank of NY Mellon, St. Jude Medical, DR Horton, Texas Instruments, Cheesecake Factory, Xilinx,SLM, Raymond James
9:00 am: FHFA home prices
10:00 am: Existing home sales
Earnings: 3M, Amazon.com, Google, Microsoft, Altria, Caterpillar, Dow Chemical, General Motors, Pepsico,Procter and Gamble, Novartis, Eli Lilly, Union Pacific, Hershey, Freeport-McMoRan, KKR, Domino’s Pizza,Johnson Controls, PulteGroup, Dunkin Brands, Raytheon,Starbucks, Capital One, Juniper Networks, Newmont Mining,Southwest Airlines, Pandora
8:30 am: Initial claims
9:45 am: Manufacturing PMI
10:00 am: New home sales
Earnings: Biogen, AstraZeneca, American Airlines Group, Cabot Oil and Gas, State Street, Xerox, A.O. Smith, Tyco
8:30 am: Durable goods