US stocks closed higher on Tuesday as better than expected earnings reports lifted market sentiment. The dollar ended little changed.

The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, closed one basis point lower at 97.841 Tuesday. The Dow Jones industrial average gained 0.4% to 18161.94 led by shares of Goldman Sachs and UnitedHealth Group. The gains of the blue chip index were limited by 2.6% drop in IBM shares after the company reported earnings miss late Monday. The S&P 500 rose 0.6% settling at 2139.60 led by health-care, materials and utility stocks. The Nasdaq index climbed 0.9% to 5243.84 boosted by a rally in biotechnology stocks. The Consumer Price Index rose 0.3% over month in September, the largest increase in five months. At the same time the core inflation, measuring price increases without volatile energy and foods items, rose by just 0.1% in September after 0.3% gain in August. Treasury yields declined on slower core inflation rise, reflected also in marginal reduction of Fed rate hike likelihood in December: the probability of a rate hike fell to 60% from 64% in the previous day according to CME FedWatch tool. In other economic news the index of home builder sentiment slipped two points to 63 in October, after surging to its highest in a decade in September. Today at 13:00 CET Mortgage Applications will be released in US. At 14:30 CET September Housing Starts and Building Permits will come out, the outlook is positive for US dollar. At 14:45 CET Federal Reserve Bank of San Francisco President John Williams speaks at a conference in Newark, New Jersey. At 16:00 CET today the Bank of Canada will release its interest rate decision, no change in policy is anticipated.