Banks lead US stocks higher after Goldman Sachs, JPMorgan Chase beat earnings forecasts

Banks are leading an early advance in U.S. stocks after JPMorgan Chase and Goldman Sachs turned in better results than investors were expecting.

The Dow Jones industrial average rose 62 points, or 0.4 per cent, to 17,116 in the first few minutes of trading Tuesday. JPMorgan and Goldman Sachs rose the most of the 30 stocks in the Dow.

The Standard & Poor’s 500 index rose five points, or 0.3 per cent, to 1,982. The Nasdaq composite rose 10 points, or 0.2 per cent, to 4,450.

Reynolds American fell 4 per cent and Lorillard fell 8 per cent after the companies announced terms of their deal under which Reynolds will buy its rival cigarette maker.

Bond prices didn’t move much. The yield on the 10-year Treasury note was little changed at 2.55 per cent.