us stocks were trading mostly higher tuesday morning as investors cheered a batch of mostly upbeat corporate earnings reports but assessed retail sales data that showed a more cautious consumer in june on monday the dow jones industrial average rose 76 points or 022 to 34585 the sp 500 increased 17 points or 039 to 4523 and the nasdaq composite gained 131 points or 093 to 14245 investors are starting to the economy from the eyes of corporate america as the secondquarter earnings season rolls in on tuesday more large banks report including bank of america bac morgan stanley ms and bny mellon bk while interactive brokers ibkr and charles schwab schw and also presenting their numbers defense contractor lockheed martin lmt also released its results on friday jpmorgan chase  co jpm wells fargo wfc and citigroup cbeat their earnings targets investors will be hoping that figures and management forecasts justify a market that sits at its best levels since april 2022 with the sp 500 and nasdaq composite indices up 178 and 361 for the year to date sentiment has been underpinned by a pull back in implied borrowing costs  the 10year treasury yield is 377 down from more than 4 a week or so ago  on hopes cooling inflation means the federal reserve can be less aggressive in raising interest rates the fed meets next week to discuss its next interest rate move central bankers are widely expected to make a 25basis point increase in the fed funds rate but the big question is what happens after that hike indeed some analysts think that monetary policy remains the main driver of markets with nominal growth holding up inflation easing and expectations for earnings not that high i suspect interest rates will continue to be the most important factor for risk markets said stephen innes managing partner at spi asset management the health of consumer is another ongoing question june retail sales showed a meager belowforecast increase as consumers cope with the feds rate hike campaign and questions about whats next for the economy retail sales increased 02 in june below the 05 expectation excluding autos and gas sales increased 03 during the month while positive the numbers were weaker than expected and show growing consumer caution robert frick corporate economist with navy federal credit union overall americans have the money to spend with more jobs higher wages and lower inflation but given slowing spending and higher savings theyre choosing to be prudent perhaps because a majority see unemployment rising later this year other economic updates on tuesday include june industrial production and capacity industrial output was down 05 in june after a revised 05 decline the month before the decline was below expectation of a flat reading the manufacturing sector is in a sorry state one economist said meanwhile business inventories increased 02 in may other data out tuesday had a more upbeat tone the home builders sentiment index increased for the seventh straight month the shortage of existing homes for sale is helping buoy builders outlooks but high mortgage rates around the 7 mark and questions about the feds interest rate policy are reasons for caution in the optimism according to robert dietz chief economist at the national association of home builders this content was created by marketwatch which is operated by dow jones  co marketwatch is published independently from dow jones newswires and the wall street journal