Stocks Open Higher, Led by Industrials, Energy
Stocks opened higher Tuesday, after ending lower in the previous session as Moody's downgraded Greece's credit rating to junk status.
The Dow Jones Industrial Average rose more than 60 points at the open, after losing about 20 points in the prior session.
Industrials and energy were among the early leaders as oil topped $75 a barrel. Techs also gained.
Boeing , Caterpillar and Alcoaled the Dow; Home Depot and Walmart were among the few blue-chip decliners.
In the morning's economic news, the Empire State manufacturing index rose to 19.57in Jue from 19.11 in May, though that was down from 31.86 in April, according to the latest report from the NY Fed. Economists had expected the gauge to rise to 20.
A separate report from the government showed import prices fell 0.6 percent in May, the largest decline in nearly a year as petroleum costs plummeted, while export prices unexpectedly increased 0.7 percent.
And a gauge of homebuilder sentiment dropped to 17 in June from 22 in May as the first-time homebuyers' tax credit expired, the National Association of Home Builders reported.
The euro rose against the dollar as strong demand for government debt from several European countries offset worries about the debt crisis after Moody's downgraded Greece's credit rating to junk status.
Best Buy shares skidded after the electronics retailer reported earnings that missed expectations as television prices fell sharply.
Research In Motion rose following news that the BlackBerry maker is working on touch-screen technology to compete with the iPhone.
And Apple launched a new version of the Mac mini, its lowest priced computer, which will start at $699.
BP remained under intense political pressure ahead of a congressional hearing featuring the company's U.S. chief executive. President Obama will give a primetime speech on the oil spill. Reuters reported that BP hired investment banksBlackstone Group, Goldman Sachs, and Credit Suisse as advisers, but did not elaborate on the purpose of the advice.
In London, shares of BP turned negative after Fitch cut the oil major's debt rating to 'BBB' from 'AA' citing the risk of higher near-term costs, but later came back as investors shrugged off the move, since the oil company is still rated in investment grade territory.
Banks were mostly higher asHouse and Senate conferees resume work on the financial regulation reform bill Tuesday, trying to iron out differences between the two versions.
Hershey announced plans to cut 500 to 600 jobs, or about 5 percent of its workforce.
And Starbucks announced that it will now offer Wi-Fi in all of its stores using the AT&T network, a moved aimed at hitting back at big chains like McDonald's that are getting into the coffee business.
In mergers and acquisitions, News Corp offered to buy the 61 percent of satellite TV provider BSkyB that it doesn't already own for $11.5 billion, but its offer has been rejected, with BSkyB saying it significantly undervalues the company.
Shares of the CBOE exchange begin trading today after pricing at $29, the top of the expected range, last night. It is the last major North American exchange to be publicly traded.
The Commodity Futures Trading Commission approved so-called box-office futures, allowing traders to bet on how well movies will do at the box office. Trading is expected to begin some time during the third quarter.
And in Europe, Nestle announced it is suing Sara Lee for patent infringement of its Nespresso coffee system, to protect its top-selling product.
TUESDAY: Fed's Bullard speaks; credit card default rates expected; E3 video game conf.
WEDNESDAY: Weekly mortgage apps; PPI; housing starts; industrial production; weekly oil inventories; Fed's Plosser speaks; Disney insider trader hearing; China trade hearing; Earnings from FedEx
THURSDAY: CPI; weekly jobless claims; current accounts; leading indicators; Philadelphia Fed survey; BP CEO testifies
FRIDAY: Quadruple witching; S&P indexes rebalanced
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