US open: Stocks trade higher as Q2 earnings season continues

Wall Street stocks were in the green early on Tuesday amidst more key earnings reports.

As of 1525 BST, the Dow Jones Industrial Average was up 1.05% at 31,399.62, while the S&P 500 was 1.48% firmer at 3,887.44 and the Nasdaq Composite came out the gate 1.29% firmer at 11,507.14.

The Dow opened 327.01 points higher on Tuesday, reversing losses recorded in the previous session as a busy week of earnings kicked off with updates from some of the nation's biggest banks.

Corporate earnings were again in focus on Tuesday, with drugmaker Johnson & Johnson cutting full-year profit guidance after the firm took a hit from a strengthened US dollar, while toymaker Hasbro said it had swung to a second-quarter profit, boosted by a strong performance in its gaming unit.

Netflix will update after the close.

Elsewhere, Bloomberg revealed that Apple will decelerate hiring and spending on growth in 2023 as part of an effort to prep for a potential economic downturn, while IBM lowered cash flow forecasts despite reporting earnings that beat earnings and revenue estimates.

On the macro front, homebuilding activity in the US slowed sharply last month. According to the Department of Commerce, in seasonally adjusted terms, housing starts slipped by 2.0% month-on-month to reach an annualised rate of 1.55m (consensus: 1.59m) - 6.3% below their year-earlier level.

Similarly, building permits, which lead starts, dipped by 0.6% versus May to hit 1.68m. However, that was ahead of the consensus forecast for a print of 1.67m.

Still to come, Federal Reserve vice chair Lael Brainard will deliver a speech at 1935 BST.

Reporting by Iain Gilbert at Sharecast.com