Investors look set to add more gains to Monday’s strong rally at the start of trading Tuesday.
A word of caution about the economy from Federal Reserve Chairman Ben Bernanke sent stocks soaring Monday, as investors saw the Fed chief’s comments as evidence that the central bank is prepared to keep the cost of borrowing low, and that news boosted stocks across the board.
The Dow Jones industrial average closed Monday day with a gain of 161 points, or 1 percent, finishing just 11 points below its highest close of the year, seen on March 15.
European stocks were higher, while Japan's Nikkei average jumped 2.4 percent to hit its highest closing level since a massive earthquake and tsunami triggered a radiation crisis a year ago, buoyed by indications the U.S. Federal Reserve may keep its supportive monetary policy.
Brent crude held steady above $125 while the dollar stayed near a one-month low against a currency basket on Tuesday after Bernanke kept the door open for more monetary easing, though debt worries left the euro struggling to extend gains versus the U.S. currency.
The European Commission has opened an in-depth investigation into the proposed acquisition of Goodrich Corp by United Technologies Corp, both U.S. aviation equipment makers, the European Union's executive said on Tuesday.
Apple Inc Chief Executive Tim Cook has jetted into China for talks with government officials as he seeks to clear up a pile of problems in the firm's biggest growth market, from its contested iPad trademark to treatment of local labor.
Orders flowed normally through BATS Global Markets on Monday, bringing a sigh of relief that the core trading business of the nation's third-largest stock exchange remains on track despite a high-profile trading snarl on Friday.
Discount retailer Dollar General Corp said it will buy back about $300 million in shares from Buck Holdings L.P., the company's controlling shareholder.
Bausch & Lomb said it agreed to buy Ista Pharmaceuticals Inc for about $500 million in cash to broaden its portfolio of eye health products.
On the macro front, investors await the S&P/Case-Shiller Home Price Index for January and the Conference Board releases March consumer confidence.
Reuters contributed to this report.
