Wall Street mostly rises after US inflation data and bank earnings

Wall Street stocks mostly rose early Tuesday after improved US inflation data and strong earnings from large banks.

The US consumer price index rose 3.5 percent in June from a year earlier, down from 4.2 percent in May. The slowdown was sharper than expected. The data came as Federal Reserve Chair Kevin Warsh prepared to tell Congress that he would seek to end a years-long US inflation surge, according to prepared remarks for testimony scheduled later Tuesday morning.

About 20 minutes after trading began, the Dow Jones Industrial Average was flat at 52,503.33. The S&P 500 rose 0.3 percent to 7,534.54, and the Nasdaq Composite Index gained 0.5 percent to 26,011.25.

Large US banks rose in volatile trading after reporting strong second-quarter results. JPMorgan Chase reported profit of $21.2 billion, up 41 percent from a year earlier. Bank of America, Citigroup and Goldman Sachs also reported higher profits.

IBM shares fell more than 24 percent after the company warned that second-quarter results would be below expectations because shifts in customer actions led to weaker sales.