By Kristina Peterson
U.S. stocks opened higher on Tuesday as rising oil and metals
prices boosted materials and energy stocks and the dollar
weakened.
The Dow Jones Industrial Average (DJI) was up 40 points, or
0.4%, at 10,444 in early trading. Rising prices for crude oil and
metals helped boost materials and industrial stocks including Alcoa
(AA), up 1% and heavy machinery manufacturer Caterpillar (CAT), up
1.2%. Boeing (BA) was the measure's top performer, up 1.5%.
Weighing on the Dow, Wal-Mart (WMT) slid 0.5%.
The Nasdaq Composite (RIXF) gained 0.4%. The Standard &
Poor's 500-share index (SPX) rose 0.4%, with all but one of its
sectors in the black. Utilities, materials and industrials posted
the biggest gains. Only telecommunications slipped in and out of
the red.
Auto makers will likely grab attention on Tuesday, as February
sales figures are released. Toyota's (TM) string of recalls last
month, combined with bad weather, likely dragged down February
sales, economists predicted. Adding to the industry's woes, General
Motors recalled 1.3 million compact cars over power-steering
trouble.
But some companies are expected to benefit from their
competitors' troubles. Ford (F) shares opened up 1.4% on Tuesday at
their highest price since February 2005.
Meanwhile, assuaging some concerns over weakness in the euro
zone, the Greek government is expected to outline on Wednesday a
new austerity package of around 4 billion euros in an effort to cut
its huge budget deficit by four percentage points this year,
government officials said Tuesday. Greece's debt management agency
is also preparing a 10-year bond hoping to raise between 3 billion
and 5 billion euros, another official said.
Among stocks in focus, fertilizer maker Terra Industries (TRA)
jumped nearly 13% after CF Industries Holdings (CF) resumed its
pursuit of the company with a $4.72 billion offer that seeks to
break up the agreed bid from Norway's Yara International .
Qualcomm (QCOM) rose 3% after increasing its stock buyback
authority and increasing its dividend by 12%.
In other markets, the dollar weakened against both the yen and
the euro. Crude-oil futures rose, while gold futures also climbed.
Treasurys (TNX) edged down with the 10-year note off 8/32 to yield
3.638%.