Stocks Opened Higher on Earnings Optimism

U.S. stocks opened higher on Tuesday, boosted by PepsiCo’s strong quarterly results and gains in energy shares. The Dow Jones Industrial Average lately climbed 118.24 points, or 0.48%, to 24,894.83. The S&P 500 advanced 6.33 points, or 0.23%, to 2,790.50. The Nasdaq Composite rose 4.75 points, or 0.06%, to 7,760.95.

Oil futures rose Tuesday, as strikes by workers in Norway and Gabon added to global production outages. West Texas Intermediate crude for August delivery up 30 cents, or 0.4%, to $74.15 a barrel. September Brent crude jumped 96 cents, or 1.2%, to $79.03 a barrel.

PepsiCo Inc. posted adjusted earnings of $1.61 a share on the back of cost cuts in its various divisions.Organic revenue, which reflects the core operations of PepsiCo and excludes currency fluctuations, rose 2.6%.

Tesla Inc. has reached a preliminary agreement with the Shanghai government to build a factory that’ll rival production from its lone U.S. assembly plant, as Elon Musk takes his biggest step yet to expand overseas.