US open: Stocks edge higher as investors await key economic data

(Sharecast News) - Wall Street stocks edged higher on Tuesday, though gains were modest as investors treaded carefully ahead of a barrage of US economic data later in the week. The Dow Jones Industrial Average and S&P 500 were both 0.2% in the first 15 minutes of trade, while the Nasdaq rose 0.1%.

Asian and European stocks were performing well on Tuesday, after the Chinese government unveiled strategic measures to boost its stock markets, such as a cut in stamp duty and the loosening of margin loan rules. Concerns about a broadening financial crisis in the world's second-largest economy have hit stocks worldwide in recent weeks.

The only major economic data due for release during Tuesday's session is the Conference Board's Consumer Confidence Index, which is expected to have fallen from 117 to 116 in August.

The calendar for the rest of the week is set to pick up, with the ADP Employment Report and GDP figures due on Wednesday, jobless claims on Thursday, and manufacturing data and non-farm payrolls on Friday.

The Federal Reserve announced last week that they would be keeping a close eye on incoming economic data to determine whether or not they raise interest rates any further. But Fed chair Jerome Powell assured markets that the central bank would approach with caution in regards to further monetary policy tightening.

"The US dollar was choppy on Tuesday as investors watched on the sidelines ahead of a slew of key US economic releases over the next few days," said Lukman Otunuga, senior market analyst at FXTM.

"Due to the Federal Reserve's current data dependent stance, every release of US economic data could play a critical role in determining whether the Fed raises rates again in 2023."

Verizon, Oracle helped by broker comments

Verizon rose 2% early on after analysts at Morgan Stanley said the telecom giant could increase its dividend again in September despite negative readacross from sector peers - AT&T reduced its own dividend while Lumen eliminated its payout last year.

Also helped by broker commentary was tech group Oracle after UBS upgraded its stance on the stock from 'neutral' to' buy'.

Retailer Best Buy edged higher despite a mixed second-quarter earnings report, in which it topped both sales and profit expectations but cut its outlook for the full year. The company said 2023 is expected to be "the low point in tech demand".

Snack food group JM Smucker also gained after raising its profit forecasts for the year after a strong first quarter.