Stocks open higher as worries about Europe ease

NEW YORK (AP) — Stocks rose in early trading today after a successful bond auction in Portugal eased worries about Europe’s debt crisis.

Portugal borrowed $1.6 billion at a lower long-term interest rate than many analysts expected. That helped reassure investors concerned that Portugal may become the third European nation to require a bailout after Greece and Ireland.

Analysts cautioned that it’s still possible Portugal could need a financial lifeline if its economy slips back into recession this year.

“Things are not resolved completely here,” said Rob Lutts, president and chief investment officer of Cabot Money Management.

The Dow Jones industrial average rose 61 points, or 0.5 percent, to 11,732 in early trading.

The Standard & Poor’s 500 index rose 7, or 0.5 percent, to 1,281. The Nasdaq composite index rose 8, or 0.3 percent, to 2,725.

JPMorgan Chase & Co. rose 2.3 percent to $44.58 after the company’s CEO, Jamie Dimon, told CNBC late Tuesday that the bank hopes to increase its dividend in the second quarter. That sent other financial stocks higher. Capital One Financial Corp. rose 2.3 percent to $47.28 and U.S. Bancorp rose 2.1 percent to $26.61.