Stocks open higher on hopes for China stimulus

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NEW YORK (AP) -- Stocks are opening higher on Wall street on optimism that China will take action to reverse a slowdown in its economic growth.

The Dow Jones industrial average is up 85 points at 12,539 shortly after the opening bell Tuesday. Caterpillar and Alcoa rose the most of the 30 stocks in the average.

U.S. markets were closed Monday for Memorial Day.

The Standard & Poor's 500 index rose nine points to 1,327 and the Nasdaq composite rose 21 points to 2,858.

In Europe, most markets moved higher after early declines. Britain's FTSE 100 rose 0.6 percent and Germany's DAX rose 1.2 percent.

Asian indexes also closed higher as investors hoped that China is on the verge of more steps to shore up its fatigued economy.