US open: Stocks edge forward on upbeat earnings

LONDON (ShareCast) - US stocks edged higher on Tuesday, as markets were buoyed by a raft of better-than-expected earnings. Just before 15:00 the Dow Jones Industrial Average was up 12 points, while the S&P 500 and the Nasdaq gained four and 23 points respectively.

Japanese and Chinese stocks closed firmly in positive territory, while European indices followed the same path and posted solid gains in the morning session, as markets continued to benefit from The People's Bank of China (HKSE: 3988-OL.HK - news) 's decision to cut reserve ratio.

"This game-changing move is still working its way through world equities, which are trading higher from Asia through Europe, to an expected higher open in the US," said CMC Markets' analyst Jasper Lawler ahead of the bell.

However, Greece's Athex Composite Index slumped over 3% amid concerns Athens will shortly run out of cash.

Telecoms group Verizon Communications Inc (Xetra: 868402 - news) . declined 1.74% despite reporting first-quarter earnings of $1.02 a share against estimates of 95 cents per share.

Tech giant United Technologies Corp . climbed 1% after posting better-than-expected first-quarter earnings, but revenue fell short of analysts' expectations as currency headwinds weighed on sales.

Security and aerospace group Lockheed advanced 0.32% as its first-quarter profits declined less than expected. The company posted a profit of $878m or $2.74 a share, against expectations of $2.50 share.

After the closing bell, Yahoo Inc (NasdaqGS: YHOO - news) . is expected to report first-quarter earnings of 18 cents a share.

Despite being billed as a potentially very difficult period for US stocks, the current earnings season has so far exceeded estimates, but analysts remained wary of a market characterised by low expectations.

"Energy companies, large multi-nationals and retailers were always the ones facing a tough earnings season on account of tumbling energy prices, a strong dollar and weather-related sales declines, respectively," said Craig Erlam, senior market analyst at Oanda.

"With many of these still to report in the coming weeks, we'll see a lot of pessimism yet and the consensus is still that overall profits will decline." Meanwhile, General Motors (NYSE: GM - news) rose 0.4% after the automotive giant said it sold 2.4m worldwide in the first quarter, a 2% increase year-on-year.

Pharmaceutical group Mylan (Berlin: 6MY.BE - news) jumped 8.8% after news emerged that it had been subject of a $40bn takeover bid in cash and stock from sector peer Teva Pharmaceutical .

The dollar rose 0.5% against the euro and climbed 0.2% and 0.4% against pound and yen respectively, while gold futures climbed 0.34% to $1,197.70.

Oil prices fell, with West Texas Intermediate losing 0.62% to $57.52 a barrel and Brent crude shedding 0.9% to $62.88 a barrel.