Wall Street hits record highs on strong retail results

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, US, February 16, 2017. [Photo/Agencies]

US stocks opened at record-highs on Tuesday as oil prices rose and investors cheered strong results of top US retailers.

Wal-Mart's shares provided the biggest boost to the Dow, rising more than 3 percent after the company reported better-than-expected quarterly comparable store sales.

Department store bellwether Macy's and home improvement chain Home Depot rose after the companies posted profits that topped estimates. Home Depot also set a $15 billion buyback plan.

Sentiment was boosted by a more than 1.5 percent rise in oil prices, after OPEC said the group was hopeful of higher compliance with its deal to cut production.

The S&P 500 energy sector jumped 0.75 percent, led by gains in Schlumberger and Chevron.

Strong earnings, robust economic data and the possibility of fiscal stimulus under President Donald Trump has lifted Wall Street's main indexes to record highs in the past months.

The dollar rose 0.58 percent after Cleveland Fed President Loretta Mester said on Sunday that she would be comfortable raising rates if the US economy kept performing. Gold prices fell 0.74 percent.

Investors will keep an eye on comments from three Federal Reserve officials on Tuesday for insight into the timing of the next interest rate hike.

While some Fed officials have said a rate hike should come sooner than later, Minneapolis Fed President Neel Kashkari said the US labor market had "more room to run" suggesting he does not believe the central bank should raise rates quickly.

Nine of the 11 major S&P 500 sectors were higher.