US stocks open higher after Monday's rout

1NEW YORK (AFP) – Wall Street stocks rose early Tuesday as markets attempted to pivot after the rout in the prior session while investors digested mixed US housing data.

On Monday, the Dow suffered its worst loss of 2021 amid worries the worsening outbreak of the Delta variant of the coronavirus could derail the economic recovery.

Analysts also say stocks were due for a pullback after hitting records earlier this month as the US reopening boosted prospects for companies.

The early gains Tuesday reflected an impulse for bargain hunting. However, analyst Patrick O’Hare warned that the key issue for the stock market “isn’t how it starts, it’s how it finishes.” About 20 minutes into trading, the Dow Jones Industrial Average was 1.0 per cent higher at 34,286.10.

The broad-based S&P 500 gained 0.7 per cent to 4,286.12, while the tech-rich Nasdaq Composite Index advanced 0.3 per cent to 14,323.89.

Data released Tuesday showed new construction projects in the US housing market jumped sharply in June, but building permits fell.

Among equities, IBM rose 4.3 per cent after reporting higher revenues for the second quarter in a row in results that topped analyst expectations.

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