Investing.com - U.S. stock markets were slightly higher after the open on Tuesday, rebounding from the previous session’s steep declines, as investors looked ahead to U.S. economic data later in the day to gauge the strength of the economy.
During early U.S. trade, the Dow Jones Industrial Average rose 0.3%, the S&P 500 advanced 0.45%, while the Nasdaq Composite index increased 0.35%.
Wall Street plunged by the most since June on Monday after the Institute for Supply Management said manufacturing index fell to a seven-month low in January, as new orders slumped.
The data sparked concerns over the outlook for the recovery, ahead of Friday’s U.S. jobs report for January, after December’s report showed that the economy added far fewer jobs than expected.
Investors now looked ahead to data on U.S. factory orders later in the day, as well as a speech from Chicago Federal Reserve President Charles Evans for further indications on the future course of U.S. monetary policy.
Microsoft shares picked up 1.8% after the company named its current head of enterprise/cloud product Satya Nadella as its new chief executive office, ending a 14-year run by Steve Ballmer. Bill Gates is resigning as chairman, and will begin a new role as a "technology adviser."
In earnings news, shares of luxury retailer Michael Kors surged 20.7% after the company’s quarterly earnings topped market expectations.
Yum Brands saw shares rally 8.7% after the parent company of KFC, Taco Bell and Pizza Hut reported better-than-expected fourth quarter earnings after Monday’s closing bell.
U.S.-listed shares of UBS jumped 6.3% after the Swiss bank swung to a profit in its quarterly results.
Meanwhile, JC Penny shares tacked on 1.7% after the struggling retailer said same-store sales rose by 2% in the fourth quarter.
On the downside, U.S.-listed shares of ARM Holdings tumbled 7.4% after the U.K.-based chip maker posted a larger-than-expected quarterly loss.
Across the Atlantic, European stock markets pared earlier losses, but remained lower as concerns the global economic recovery is faltering weighed.
The EURO STOXX 50 inched up 0.05%, France’s CAC 40 added 0.3%, Germany's DAX slumped 0.6%, while Britain's FTSE 100 shed 0.1%.
Asian stock markets fell sharply on Tuesday, with Japan’s Nikkei 225 Index plunging 4.2% to hit a three-month low as the yen strengthened against the U.S. dollar.
Markets in Hong Kong reopened after the Lunar New Year holiday with the Hang Seng Index losing 2.8%. The Hang Seng is down over 10% since hitting a recent peak, placing the index in technical correction territory.