U.S. stocks open higher on stronger earnings

NEW YORK — Stocks are opening higher on strong second-quarter earnings from Coca-Cola, IBM and other companies.

Coca-Cola Co.'s net income rose 18 percent on higher overseas sales. IBM Corp. reported results late Monday that beat analysts' estimates.

KeyCorp, a Cleveland-based banking company, reported much higher earnings thanks to a drop in loan losses.

The Dow Jones industrial average is up 110 points, or 0.9 percent, at 12,494 in early trading Tuesday. The S&P 500 index is up 11 points or 0.8 percent, at 1,317. The Nasdaq is up 37 or 1.4 percent, at 2,802.

Europe's banking troubles and the impasse over lifting the U.S. government's borrowing limit pummeled the stock market Monday.