CAT Caterpillar Inc

By Georgi Kantchev 

-- U.S. stocks open higher

-- Strong earnings support major indexes

-- Shares in Europe edge lower, while Asia stocks rise

Robust corporate earnings helped lift the Dow Jones Industrial Average in early trading Tuesday.

The blue-chip index gained 149 points, or 0.6%, to 23423 soon after the opening bell. The S&P 500 rose less than 0.1%, while the Nasdaq Composite slipped less than 0.1%.

Better-than-expected earnings results from Caterpillar and 3M among others helped support major indexes after stocks had slid a day earlier. Strong results from U.S. companies in previous quarters, as well as solid economic growth around the world, have underpinned stock markets and helped push them to record highs.

"It's a busy week for markets, but risk assets continue to perform," said Richard Benson, co-head of portfolio investments at $18 billion fund Millennium Global Investments.

Shares of Caterpillar jumped 5.5% after the company posted stronger-than-expected revenue and profit growth and boosted its outlook for the year.

Meanwhile, 3M, the maker of Post-it Notes, Ace bandages and Scotch-Brite cleaning pads, reported higher profit and revenue that exceeded analysts' expectations, while also raising its outlook. Shares of 3M rose 5%.

Together, the two companies contributed more than 100 points to the Dow industrials' gain.

The Stoxx Europe 600 index fell 0.4% after lower-than-expected economic numbers, while bourses across Asia finished mostly higher.

Central banks are another focus for investors this week. The European Central Bank is expected to announce changes to its massive bond-buying program after its meeting Thursday. Economists expect the ECB to reduce its monthly asset purchases, possibly by half, but also to extend the program for a number of months into 2018.

Investors "need to exercise caution as markets enter a different phase with less central bank support than has been the case over the past decade," said David Simner, portfolio manager at Fidelity International.

On Tuesday, IHS Markit said its composite Purchasing Managers Index for the eurozone -- based on survey responses from manufacturers and service providers -- fell to 55.9 in October from 56.7 in September. The index still points to solid growth, with 50 demarcating a rise from a contraction in output.

U.S. President Donald Trump is also expected to unveil his pick for the new leader of the Federal Reserve within the next 10 days from a roster of candidates that include current Fed Chairwoman Janet Yellen.

A hawkish candidate might send U.S. Treasury yields higher and boost the dollar, analysts say. The yields on the 10-year U.S. Treasury note rose to 2.404%, according to Tradeweb, from 2.375%. Yields rise as prices fall.

In currencies, the WSJ Dollar Index, which tracks the dollar against a basket of 16 currencies, was up 0.2%.

Elsewhere, the Shanghai Composite Index finished up 0.2%. Japan's Nikkei Stock Average extended its record-setting streak of daily gains to 16 by closing up 0.5%.

-- Michael Wursthorn contributed to this article.

Write to Georgi Kantchev at georgi.kantchev@wsj.com

(END) Dow Jones Newswires

October 24, 2017 10:22 ET (14:22 GMT)

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