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NEW YORK (CNNMoney) -- U.S. stocks were mostly higher Tuesday, as investors welcomed another batch of solid earnings results.
The Dow Jones industrial average (INDU) rose 65 points, or 0.5%, boosted by better-than-expected earnings from AT&T (T, Fortune 500) and 3M (MMM, Fortune 500).
The S&P 500 (SPX) added 2 points, or 0.2%, led by Hershey (HSY, Fortune 500), which surged to a 7-year high, and Baker Hughes (BHI, Fortune 500). Both companies also topped first-quarter earnings estimates.
The Nasdaq (COMP) swapped between slim gains and losses. With less than two hours remaining, the tech-heavy index was down 17 points, or 0.6%, dragged lower by declines in Netflix (NFLX) and Apple (AAPL, Fortune 500).
Shares of Netflix tumbled 14% Tuesday, a day after the company posted a first-quarter loss and issued a weak outlook.
Apple, the world's most valuable company, is set to release earnings after the market closes. Shares of the iPhone and iPad maker have been struggling lately, and are down more than 11% since hitting an all-time high earlier this month.
Investors were also digesting data showing that the housing market's recovery remains on shaky ground. Just before the opening bell, the S&P/Case-Shiller showed another decline in home prices for February. Following the market's open, the U.S. Census reported that new-home sales dropped 7.1% in March.
"Stocks are moving higher today on the back of decent earnings reports, but overall, I think investors are wondering whether the economic and market momentum that boosted stocks from last October through March is starting to fade," said Michael Sheldon, chief market strategist at RDM Financial Group.
During the last two years, stocks have performed strongly during the first quarter, only to deteriorate into the summer before recovering again, noted Sheldon.
While he remains positive on the market's outlook this year, he said Europe continues to be an issue.
"Europe remains a mess," said Sheldon. "The question we're asking is, 'Does it get worse from here before it get better?'"
The week began with a downward push on stocks, driven by European political uncertainty and signs of a slowdown in the Chinese economy. All three major U.S. indexes ended lower Monday.
World markets: Some of the political worries in Europe cooled Tuesday, a day after the Dutch prime minister resigned due to the collapse of his governing coalition. Despite his resignation, an auction of nearly €2 billion in bonds by the Netherlands went well Tuesday, sending yields of the nation's benchmark bonds slightly lower.
Spain, whose finances have also been a growing concern in recent weeks, also had a successful bond auction of nearly €2 billion. Its yields fell as well.
European stocks closed higher. Britain's FTSE 100 (UKX) ticked up 0.8%, the DAX (DAX) in Germany added 1%, while France's CAC 40 (CAC40) climbed 2.3%.
Asian markets ended mixed. The Shanghai Composite (SHCOMP) and Hong Kong's Hang Seng (HSI) ended slightly above breakeven, while Japan's Nikkei (N225) slid 0.8%.
Economy: Home prices hit yet another post-bubble low, according to the February reading of the S&P/Case-Shiller Home Price Index. Prices were down 3.5% from a year earlier, at their lowest level since November 2002. The data came in slightly worse than the 3.4% annual decline expected by economists surveyed by Briefing.com.
The U.S. Census reported that new-home sales dropped 7.1% in March to an annual rate of 328,000. Economists were expecting sales to come in at an annual place of 318,000.
The March Consumer Confidence Index, which speaks to the public's degree of optimism, fell to 69.2 in April, from 70.2 the previous month. Economists were expecting a reading of 69.5.
Companies: One of the busiest weeks for corporate results continued, with several heavyweights reporting first-quarter numbers.
In addition to AT&T and 3M, Dow component United Technologies (UTX, Fortune 500) also posted a better-than-forecast rise in earnings.
Texas Instruments' (TXN, Fortune 500) quarterly earnings dropped sharply, marking the fourth consecutive quarter of falling profits. But an upbeat outlook for growth boosted the chipmaker's stock.
About a third of the companies in the S&P 500 have reported results, and more than 75% have exceeded analyst expectations, according to Thomson Reuters. In a typical quarter, a little over 60% of companies beat estimates.
Meanwhile, shares of Big Lots (BIG, Fortune 500) plunged more than 20% after the company revised its first-quarter outlook for U.S. same-store sales, a key measure for retailers, lower from its March forecast. Last month, the discount retailer estimated same-store sales would rise between 2% and 4% during the first quarter. Now, Big Lots said it expects sales to be "slightly negative."
IBM (IBM, Fortune 500) boosted its quarterly dividend 13% to 85 cents per share, marking the 17th straight year of increases. The company's board also approved a $7 billion share buyback program.
Currencies and commodities: The dollar lost ground against the euro, the British pound and the Japanese yen.
Oil for June delivery rose 45 cents to $103.56 a barrel.
Gold futures for June rebounded, gaining $9.50 to $1,642.10 an ounce.
Bonds: The price on the benchmark 10-year U.S. Treasury were lower, pushing the yield up slightly to 1.95% from 1.93% late Monday.
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