New York  - US stocks rose Tuesday, after positive earnings from some major retailers and an earlier rally on European markets.

Target Corp and Home Depot Inc both posted smaller-than-expected declines in second-quarter profits. American Express led gains in financial firms after its stock was upgraded by an investment firm.

The first oil price increase in three days spurred energy companies. Crude oil rose 3.1 per cent to 72.72 dollars per barrel.

European stocks climbed earlier in the day on the back of surging investor confidence in Germany. The Centre for European Economic Research (ZEW) said its monthly index of sentiment jumped to 56.1 in August after falling to 39.5 in July.

The blue-chip Dow Jones Industrial Average jumped 82.6 points, or 0.9 per cent, to close at 9,217.94. The broader Standard and Poor's 500 Index climbed 9.94 points, or 1.01 per cent, to 989.67. The technology-heavy Nasdaq Composite Index was up 25.08 points, or 1.3 per cent, to 1,955.92.

On currency markets, the dollar rose against the euro to 70.78 euro cents from 70.04 euro cents on Monday and gained against the Japanese currency to 94.72 yen from 94.46 yen. (dpa)