U.S. stocks higher but gains limited; Dow Jones up 0.33%

U.S. stocks opened higher on Tuesday, although gains were expected to remain limites as markets were jittery ahead of comments by Federal Reserve Chairman Ben Bernanke on Wednesday.

During early U.S. trade, the Dow Jones Industrial Average rose 0.33%, the S&P 500 index edged up 0.23%, while the Nasdaq Composite index added 0.10%. 

Investors remained cautious ahead of Bernanke’s testimony at the U.S. Joint Economic Committee and the minutes of the Fed’s most recent policy meeting, both due Wednesday.

Markets were awaiting any indication that the U.S. central bank will begin to scale back its asset purchase program this year after recent economic data bolstered optimism over the economic recovery.

Among earnings, Home Depot reported better-than-expected results and boosted its full-year outlook, sending shares up 2.05%. 

Adding to gains, Yahoo shares were up 0.97%, following reports the company will buy blogging service Tumblr for USD1.1 billion cash, giving the Internet pioneer a social media platform to reach a younger generation of users and breathe new life into its ailing brand. 

Also in company news, Actavis rose 0.39% after announcing the acquisition of Warner Chilcott in a stock-for-stock transaction valued at USD5 billion. 

On the downside, cruise operator Carnival saw shares plunge 4.29% after the company projected lower full-year profit than its previous forecast. The company said its revenue per customer has fallen since it cut ticket prices in an attempt to fill cabins. 

Rival group Royal Caribbean Cruises tumbled 1.96%, following the news. 

Among retailers Urban Outfitters plummeted 2.36% after saying sales of USD648.2 million in the first quarter fell short of the USD655.1 million average estimate. 

Elsewhere, Best Buy reported better-than-expected results, but warned that heavy investments would likely pressure earnings, sending shares down 3.92%. 

Across the Atlantic, European stock markets were mixed to higher. The EURO STOXX 50 slipped 0.21%, France’s CAC 40 inched up 0.06%, Germany's DAX eased up 0.01%, while Britain's FTSE 100 rose 0.27%. 

During the Asian trading session, Hong Kong's Hang Seng Index dropped 0.54%, while Japan’s Nikkei 225 Index edged up 0.13%.