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U.S. stocks open higher, eyes on Fed; Dow Jones up 0.24%

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Investing.com - U.S. stocks opened higher on Tuesday, as markets eyed the outcome of the Federal Reserve's monthly policy meeting on Wednesday amid expectations for a small reduction in the bank's stimulus program.

During early U.S. trade, the Dow Jones Industrial Average rose 0.24%, the S&P 500 index edged 0.19% higher, while the Nasdaq Composite index gained 0.29%.

Investors shrugged off data showing that U.S. consumer prices rose 0.1% in August, below forecasts for a 0.2% increase.

Consumer inflation rose by 1.5% on a year-over-year basis, undershooting expectations for a 1.6% gain.

Core inflation edged up 0.1% in August, bringing the annual rate of core inflation to 1.8%, in line with forecasts.

Financial stocks were broadly higher, as JPMorgan Chase rose 0.21% and Bank of America edged up 0.07%, while Citigroup added 0.14%.

Bloomberg reported earlier that two former JPMorgan Chase traders were indicted for engaging in a securities fraud to hide trading losses that eventually surpassed USD6.2 billion on wrong-way derivatives bets last year.

In the tech sector, Microsoft rallied 1.22% after the company boosted its dividend by 22% to 28 cents a share and set a new USD40 billion buyback.

Adding to gains, Ford Motor Company shares were up 0.14% even as a report showed European car sales fell to a record low last month.

On the downside, Mosaic Co. plummeted 2.41% after the fertilizer producer cut its quarterly forecast for potash and phosphate sales and prices.

Outerwall was also on the downside, diving 15.94%, after the operator of video game and movie kiosks cut its current-quarter and full-year earnings and revenue estimates.

Other stocks likely to remain in focus included Adobe Systems, scheduled to report earnings later in the day.

Across the Atlantic, European stock markets were lower. The EURO STOXX 50 edged down 0.08%, France's CAC 40 slipped 0.11%, Germany's DAX fell 0.13%, while Britain's FTSE 100 declined 0.45%.

During the Asian trading session, Hong Kong's Hang Seng Index slid 0.31%, while Japan's Nikkei 225 Index retreated 0.65%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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