Stocks Opened at Record Highs after Earnings Reports

U.S. stocks opened higher on Tuesday as investors welcomed earnings reports from retailers such as Wal-Mart Stores, Inc., Home Depot Inc. and Macy’s Inc. The Dow Jones Industrial Average lately advanced 93.52 points, or 0.45%, to 20,717.57. The S&P 500 was up 10.07 points, or 0.43%, to 2,361.23. The Nasdaq Composite gained 23.09 points, or 0.40%, to 5,861.67.

Oil prices rose more than $1 a barrel on Tuesday after OPEC said it was sticking to its agreement to cut production and hoped compliance with the deal would be even higher. Benchmark Brent crude oil jumped $1.13 a barrel to a high of $57.31 before easing to trade around $57.15 by 1125 GMT. U.S. light crude was up $1.00 at $54.40.

Macy’s released fourth-quarter earnings on Tuesday, beating slightly on sales and earnings. The retailer posted adjusted earnings of $2.02 per share, higher than the $1.96 per share expected by analysts. The company also released preliminary guidance for 2017, expecting sales to decline by 2% to 3% for the full year at all owned and licensed stores.

Wal-Mart Stores Inc (WMT.N) on Tuesday reported higher-than-expected U.S. sales, helped by more customer visits to stores and accelerating online activity. Net income attributable to Wal-Mart fell to $3.76 billion in the fourth quarter ended Jan. 31 from $4.57 billion a year earlier. Wal-Mart said it expected earnings per share of 90 cents to $1 in the current quarter and $4.20 to $4.40 for this fiscal year.

Home Depot Inc. reported higher-than-expected profit and sales, helped by a strong U.S. housing market, and set a $15 billion share repurchase plan. Home Depot reported a 5.8 percent rise in quarterly sales to $22.21 billion. The company’s net earnings rose to $1.74 billion, or $1.44 per share, in the fourth quarter, from $1.47 billion, or $1.17 per share, a year earlier.

Verizon Communications Inc (VZ.N) said on Tuesday it would buy Yahoo Inc’s (YHOO) core business for $4.48 billion, lowering its original offer by $350 million in the wake of two massive cyber attacks at the internet company.

Restaurant Brands International Inc (QSR.TO), owner of the Burger King and Tim Hortons fast-food chains, said on Tuesday it would acquire Popeyes Louisiana Kitchen (PLKI) for $1.8 billion in cash.