Stocks Opened Higher on Earnings

U.S. stocks edged higher at the open on Tuesday, as investors cheered earnings reports from blue chips Coca-Cola Co. and Johnson & Johnson. The Dow Jones Industrial Average lately gained 86.90 points, or 0.54%, to 16,260.14. The S&P 500 was up 11.94 points, or 0.65%, to 1,842.55. The Nasdaq Composite added 28.53 points, or 0.71%, to 4,051.22.

U.S. consumer prices rose slightly more than expected in March, suggesting a disinflationary trend had run its course. The Labor Department said on Tuesday its Consumer Price Index increased 0.2 percent in March, as a rise in food and shelter costs offset a decline in gasoline prices. The CPI index had gained 0.1 percent in February.

The U.S. Federal Reserve is considering adopting yet more measures to address the remaining stability risks in the short-term wholesale funding markets that seized during the 2008 financial crisis, Fed Chair Janet Yellen said on Tuesday.

Coca-Cola Co reported better-than-expected quarterly revenue as strong sales in China more than offset a drop in Europe and flat volumes in North America. Global case volumes rose 2 percent in the quarter, while those in China rose 12 percent due to increased marketing around the Chinese New Year, the company said.

Zebra Technologies Corp. (ZBRA) is buying a unit of Motorola Solutions Inc. (MSI) for $3.45 billion, borrowing heavily for a bet on mobile-computing services for businesses that need to track employees and products.

Johnson & Johnson’s first-quarter profit rose 8 percent, because of restrained costs and a big jump in prescription drug sales. Net income was $4.73 billion, or $1.64 per share, up from $3.5 billion, or $1.22 per share, a year earlier. Revenue totaled $18.12 billion, up 3.5 percent.

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