MARKET SNAPSHOT: U.S. Stocks Open Higher; J.P. Morgan Rallies

By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- The Dow Jones Industrial Average pushed into record territory early Tuesday, lifted by better-than-expected results from J.P. Morgan Chase & Co. and Goldman Sachs Group Inc.

The S&P 500 (SPX) opened 3.7 points, or 0.2%, higher at 1,980.72. The Dow Jones Industrial Average (DJI) added 42 points, or 0.3%, to 17,099.72, a day after ending less than 0.1% off its record close. The Nasdaq Composite (RIXF) began the day 6 points, or 0.2%, higher at 4,446.92.

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The early gains were also supported by broadly positive economic reports. The Empire State manufacturing activity picked up in July to its highest reading in four years. While retail sales in June rose less than expected, most stores except for auto dealers and home-improvement outlets boasted an improvement in revenue. U.S. import prices edged up less than expected.

Investors will focus on the congressional testimony from Federal Reserve Chairwoman Janet Yellen, which is scheduled to begin at 10 a.m. Eastern.

In earnings news, J.P. Morgan Chase(JPM) reported net income of $1.46 a share, which included 13 cents a share in legal expenses. Shares rose 3.5%.

Goldman Sachs(GS) reported second-quarter earnings of $4.10 a share and revenue of $9.13 billion, beating Wall Street estimates. Goldman shares rose 1.5%.

Johnson & Johnson (JNJ) boosted its outlook and earnings topped forecasts, however the stock fell 1%.

Yahoo Inc. (YHOO) and Intel Corp. (INTC) are both due to report after the close. Read more about the day's notable movers here.

Economic data: broadly positive

* The Empire State manufacturing survey: 25.6 in July, up from 19.3 in June

* Sales at U.S. retailers rose to a seasonally adjusted 0.2% in June, or by 0.4% excluding the auto sector.

* The prices paid for goods imported into the U.S. edged up 0.1% in June, largely because of higher fuel costs by the smallest amount since.

* Fed Chairwoman Janet Yellen will give testimony to Congress on the economy and monetary policy on Tuesday and Wednesday.

Gold recovers, pound rallies

Asian markets did build on those gains, with the Nikkei 225 index settling at a more than one-week high. Gold(GCU4) was also higher after Monday's heavy losses, gaining $6.10, while oil(CLQ4) was pushing lower.

The German ZEW economic-sentiment reading on Tuesday fell far short of expectations, which weighed on Europe stocks and the euro (EURUSD). The British pound(GBPUSD) rallied after U.K. inflation inched closer to the Bank of England's 2% target.

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