(AP) -- U.S. stocks moved higher in morning trading Tuesday as investors weighed the White House's decision to impose tariffs on another $200 billion of Chinese goods beginning next week. Gains in technology and consumer-focused companies outweighed losses in utilities and elsewhere in the market. Oil prices rose.
KEEPING SCORE: The S&P 500 index rose 16 points, or 0.6 percent, to 2,905 as of 11:28 a.m. Eastern Time. The Dow Jones Industrial Average climbed 115 points, or 0.4 percent, to 26,177. The Nasdaq composite gained 79 points, or 1 percent, to 7,975. The Russell 2000 index of smaller companies added 6 points, or 0.4 percent, to 1,7010.
THE QUOTE: "The tariffs, they kind of came in as expected, but there's been this ongoing hope that this eventually will get resolved," said Erik Davidson, chief investment officer for Wells Fargo Private Bank.
TRADE SHOWDOWN: The Trump administration announced late Monday that it will impose tariffs on an additional $200 billion of Chinese goods starting next Monday, potentially raising prices on goods ranging from handbags to bicycle tires. The tariffs will start at 10 percent and then climb to 25 percent on Jan. 1.
China responded by saying it will increase tariffs on $60 billion worth of U.S. goods. The move involves increases of 10 percent and 5 percent on 5,207 types of U.S. goods. A list released last month included coffee, honey and industrial chemicals.
Trump has threatened to add another $267 billion in Chinese imports to the target list in response to any retaliation by China. That would raise the total to $517 billion, covering nearly everything China sells in the United States.
TECH REBOUND: Technology stocks rebounded after leading a market sell-off a day earlier. Micron Technology rose 4.4 percent to $45.49. Apple, which received an exemption to the new tariffs on goods imported from China, gained 0.9 percent to $219.88.
ALL ABOARD: United Pacific climbed 4.7 percent to $164 after the railroad operator announced a plan to improve its profitability.
NOT SO HUNGRY: General Mills slumped 8 percent to $43.96 after the cereal maker reported quarterly sales that fell short of analysts' estimates.
GOOD CHEMISTRY: Shares in Nexeo Solutions surged 13.3 percent after it agreed to be acquired by specialty chemicals maker Univar in a deal the companies valued at $2 billion.
DISAPPOINTING QUARTER: Oracle slid 1.1 percent to $48.64 after the business software company said its latest quarterly sales fell short of analyst estimates.
BOTCHED DELIVERY: FedEx dropped 4.5 percent to $244.11 after the package delivery giant reported quarterly earnings that fell short of Wall Street's forecasts.
ENERGY: Oil prices climbed ahead of an upcoming OPEC meeting where members will weigh how to address the loss of supply from Iran, which faces U.S. sanctions. Benchmark U.S. crude rose 1.1 percent to $69.69 a barrel in New York. Brent crude, used to price international oils, gained 1 percent to $78.83 a barrel in London.
The pickup in oil prices helped send energy stocks higher. Hess climbed 2.3 percent to $68.33.
BOND YIELDS: Bond prices fell. The yield on the 10-year Treasury rose to 3.03 percent from 3 percent late Monday.
CURRENCIES: The dollar rose to 112.36 yen from 111.18 yen on Monday. The euro weakened to $1.1683 from $1.1686.
MARKETS OVERESEAS: In Europe, the DAX in Germany rose 0.4 percent, while France's CAC 40 added 0.2 percent. Britain's FTSE 100 was flat. Japan's Nikkei 225 jumped 1.4 percent, while the Kospi in South Korea added 0.3 percent. Hong Kong's Hang Seng index gained 0.6 percent.