Stocks Open Higher on Earnings

U.S. stocks opened higher on Tuesday, thanks to prices gains in Merck & Co and Pfizer Inc following better-than-expected quarterly results. The Dow Jones Industrial Average lately added 29.67 points, or 0.17%, to 17,012.26. The S&P 500 was up 2.66 points, or 0.13%, to 1,981.57. The Nasdaq Composite gained 19.90 points, or 0.45%, to 4,464.81.

Merck (MRK) reported second-quarter profit of $2 billion, or 68 cents a share, up from $906 million, or 30 cents a share, in the same period a year ago.

Pfizer Inc. said its second-quarter results topped expectations, although its revenue declined. The company posted earnings of $2.91 billion, or 45 cents a share, down from $14.1 billion, or $1.98 a share, in the prior-year period.Revenue decreased 1.5% to $12.77 billion. Total sales slipped 1% to $10.93 billion, amid a 2% decline in pharmaceutical sales.

Aetna Inc. said its second-quarter profit rose as the insurer posted record medical membership and revenue. For the second quarter, Aetna posted earnings of $548.8 million, or $1.52 a share, up from $536 million, or $1.49 a share, a year earlier. Operating revenue rose 25% to $14.49 billion.

United Parcel Service Inc.’s second-quarter profit missed analysts’ expectations, while the company lowered its earnings outlook for the year. UPS posted a profit of $454 million, or 49 cents a share, down from $1.07 billion, or $1.13 a share, in the prior-year period. Revenue improved 5.6% to $14.27 billion.

Home prices continued to rise this spring, but the pace of increase has slowed since late last year. The S&P/Case-Shiller home price index, a closely watched measure of home values. posted a 9.3% annual increase in its May reading, down from the 10.8% rate in April.