Stocks climb after euro climbs, European markets advance; Traders shrug off Best Buy earnings

US stocks rise after European markets climb

NEW YORK — Stocks are higher after a rising euro and gains in European stocks signal concerns are easing that the continent’s debt loads will disrupt a global recovery.

The rise in U.S. stocks early Tuesday are broad. Traders are shrugging off a weaker-than-expected earnings report from electronics chain Best Buy Co. Its shares are down 6 percent.

The euro rose to $1.2285 in a sign that investors are more confident that European governments can slash debt without spoiling an economic recovery.

Major European stock indexes reversed early losses and moved higher in afternoon trading.

The Dow Jones industrial average is up 75 at 10,267. The Standard & Poor’s 500 index is up 7 at 1,097, while the Nasdaq composite index is up 14 at 2,258.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

NEW YORK (AP) — U.S. stocks looked to open higher Tuesday but a weaker-than-expected earnings report from electronics chain Best Buy Co. pulled futures off their highs.

Stocks have been pointing higher after European markets rebounded from an early slide and the euro strengthened.

Best Buy’s fiscal first-quarter net income and revenue fell short of analysts’ expectations but the company reiterated its fiscal 2011 forecast. The report brought concerns that consumers will cut spending and hurt a U.S. recovery. Best Buy fell $2.85, or 6.9 percent, to $38.20 in electronic trading.

Dow Jones industrial average futures rose 49, or 0.5 percent, to 10,190. Standard & Poor’s 500 index futures rose 5.60, or 0.5 percent, to 1,091.80, while Nasdaq 100 index futures rose 11.25, or 0.6 percent, to 1,857.75.

Bond prices were little changed. The yield on the benchmark 10-year Treasury note rose to 3.27 percent from 3.26 percent late Monday.

The initial drop overseas came a day after credit rating agency Moody’s cut its rating on Greece’s debt to “junk” status. The reaction in Europe to the downgrade signaled that traders are still grappling with worries about Greece’s debt load but that fears are easing that the country will trip up a recovery in Europe.

In afternoon trading, Britain’s FTSE 100 climbed 0.4 percent, Germany’s DAX index rose 0.5 percent, and France’s CAC-40 rose 0.5 percent. Earlier, Japan’s Nikkei stock average finished up 0.1 percent.

Traders in the U.S. initially had little reaction to the report Monday afternoon but a broad gain in stocks faded by the close. Major stock indexes ended mixed after the downgrade and after the Standard & Poor’s 500 index failed to push above its average close of the past 200 days. That’s a key technical level watched by traders. Trading below that level is seen as a sign of weakness in the market.

Trading has been choppy since the market climbed to its 2010 highs in late April. Stocks have been logging big swings in a sign that traders are uncertain about whether the economy will continue to recover.

The euro rose against the dollar early Tuesday, a sign of confidence that European Union countries will be able to cut debt without spoiling a rebound. The weaker dollar, in turn, helped prop up the price of oil. A drop in the dollar boosts demand by making oil and other commodities less expensive to foreign buyers. Gold slipped.

Crude oil rose 86 cents to $75.98 per barrel in electronic trading on the New York Mercantile Exchange.

Economic and corporate news could help direct trading. The National Association of Home Builders’ housing market index is due during afternoon trading. The index tracks industry confidence.

Shares of BP PLC rose 60 cents, or 2 percent, to $31.27 in premarket trading after credit ratings agency Fitch Ratings cuts its rating on the oil company. Fitch cited concerns about rising costs tied to the Gulf of Mexico oil spill that began April 20 when a rig operated by BP exploded.

BP shares fell 10 percent Monday after concerns grew about stepped-up political pressure in the U.S. to set aside money for costs related to the spill.

British Sky Broadcasting rejected a $17.7 billion takeover offer from News Corp. BSkyB said it would consider a higher offer. News Corp. is owner of The Sun and The Times newspapers in London and already holds a 39 percent stake in BSkyB.