Stocks Opened Higher on Earnings

U.S. stocks opened higher on Tuesday, lifted by better-than-expected results from J.P. Morgan Chase & Co. and Goldman Sachs Group Inc. The Dow Jones Industrial Average lately added 53.14 points, or 0.31%, to 17,108.56. The S&P 500 gained 4.75 points, or 0.24%, to 1,981.85. The Nasdaq Composite was up 9.39 points, or 0.21%, to 4,449.81.

A gauge of U.S. consumer spending rose solidly in June, in the latest sign that the economy ended the second quarter on a firmer footing.The Commerce Department said core sales increased 0.6 percent last month after rising by an upwardly revised 0.2 percent in May.

J.P. Morgan Chase & Co. reported second-quarter profit that beat expectations. J.P. Morgan reported a profit of $6 billion, or $1.46 a share, compared with $6.5 billion, or $1.60 a share, a year earlier.Revenue was down 3% to $24.45 billion, and was down 2.3% on an adjusted basis to $25.35 billion.

Goldman Sachs Group Inc. said second-quarter net income rose 5.5% on strength of its investment banking and investing and lending arms. Results easily topped the estimates of analysts polled by Thomson Reuters. Goldman  posted net income of $2.04 billion, compared with year-earlier net income of $1.93 billion.

Johnson & Johnson said its second-quarter earnings grew as sales of the company’s new hepatitis C drug continued to boost the health-care giant’s revenue. The company recorded world-wide Olysio sales of $831 million in the second quarter, compared with $354 million in the first quarter and higher than many analyst estimates.

Reynolds American Inc. (RAI) will buy Lorillard Inc. LO -8.12% in a $27.4 billion deal that includes assumption of net debt, the tobacco companies said on Tuesday.

Microsoft Corp. (MSFT) is planning its biggest round of job cuts in five years, as the software maker looks to slim down and integrate Nokia Oyj’s handset unit, people with knowledge of the company’s plans said.