US stocks open higher on Microsoft, earnings reports

AFP photo

NEW YORK – US stocks Tuesday opened higher as Microsoft made a long-awaited announcement on a new chief executive and a handful of corporate results bested expectations.

Five minutes into trade, the Dow Jones Industrial Average advanced 37.06 points (0.24 percent) to 15,409.86.

The broad-based S&P 500 picked up 7.66 (0.44 percent) at 1,749.55, while the tech-rich Nasdaq Composite Index gained 19.62 (0.49 percent) at 4,016.58.

Dow component Microsoft said that founder Bill Gates was stepping down as chairman to become a technology adviser and Satya Nadella, head of its cloud-computing division, would succeed Steve Ballmer as chief executive. Microsoft shares rose 1.4 percent.

Investors were also cheered by strong reports from retailers JC Penney and Michael Kors Holdings and restaurant chain Yum Brands.

Investors are hoping stocks recover after a weak start to 2014 that included a two percent retreat by US equities Monday.