Stocks Opened Mostly Higher, but Alphabet Weighed on Nasdaq

U.S. stocks opened mostly higher on Tuesday, helped by strong earnings from Caterpillar and McDonald’s, but Google-parent Alphabet weighed on the tech-heavy Nasdaq. The Dow Jones Industrial Average lately rose 104.73 points, or 0.49%, to 21,617.90. The S&P 500 gained 7.53 points, or 0.30 %, to 2,477.44. The Nasdaq Composite dropped 1.29 points, or 0.02%, to 6,409.52.

Caterpillar Inc (CAT.N) smashed Wall Street’s profit estimates and raised its full-year forecast for the second time, driven by improving demand in China and a recovery in mining activity. Total sales rose 9.6 percent to $11.33 billion and handily beat analysts’ average estimate of $10.93 billion, according to Thomson Reuters I/B/E/S.

Though second-quarter revenue slipped 3% from a year ago to $6.05 billion, McDonald’s beat on the bottom line, topping adjusted-earnings-per-share estimates at $1.73. Analysts polled by Thomson Reuters had forecast earnings of $1.62 a share on revenue of $5.96 billion.

Biogen Inc. (BIIB) reported second-quarter profit and revenue beats. Earnings for the latest quarter fell to $863 million, or $4.07 per share, from $1.05 billion, or $4.79 per share in the year-earlier period. Adjusted earnings-per-share were $5.04. Revenue rose to $3.08 billion from $2.89 billion.

U.S. home price growth eased slightly but stayed strong as demand outweighs supply throughout the housing market. The S&P/Case-Shiller 20-city index rose 5.7% in the three-month period ending in May compared to a year ago, down from 5.8% in the prior period.

Michael Kors on Tuesday said it has agreed to acquire upscale shoemaker Jimmy Choo for £896 million ($1.17 billion), as it looks to offset slower growth in its core handbag business.