Wall St closes mostly higher

United States stocks mostly closed higher, as the S&P 500 managed to snap a four-day streak of declines, and a handful of retailers reported better-than-expected earnings.

Investors eagerly, and nervously, await more details on the future of the Federal Reserve's easy monetary policy later this week.

The Dow Jones Industrial Average lagged behind, declining 7.75 points, or 0.1%, to 15002.99 points.

The S&P 500 added 6.29 points, or 0.4%, to 1652.35 points, reversing course after a 2.6% slide over the previous four days.

The Nasdaq Composite Index gained 24.50 points, or 0.7%, to 3613.59 points.

Best Buy rose 8.2% after recording profit growth that topped analysts' forecasts.

Home Depot reported better-than-expected quarterly results and raised its full-year earnings and revenue forecast, citing an improving housing market. But the home-improvement retailer's shares slipped 1.2%. In the past year, Home Depot shares are up 31%, nearly double the advance of the S&P 500.

Stocks' gains reflect a calming of investors' jitters over a sharp increase in interest rates the past few weeks, Westwood Holdings Group Inc chief investment officer Mark Freeman said.

The yield on the benchmark 10-year Treasury note fell to 2.816%. Overall though, US Treasury prices recovered somewhat from a three-day losing streak.

"The level of fear has subsided, at least temporarily," Mr Freeman said. "So far, the equity market has been able to live with where rates have risen."

Uncertainty still surrounds the Fed's plans to scale back stimulus efforts by reducing bond-purchasing programs, as early as September. The Fed is due to release the minutes of its latest policy-setting committee's meeting Wednesday. Later in the week, the Fed is set to host its annual meeting of global central bankers in Jackson Hole, Wyo.

Stock-trading volume was light Tuesday, but investors were "squaring positions and don't want to be too far offsides ahead of the Fed minutes and Jackson Hole," UBS AG head of Americas client trading and execution Jonah Cave said. About 5.3 billion shares changed hands in the US during the session, according to FactSet, 15% below the daily average this year.

Worries about reduced Fed stimulus and the extended weakness in US shares weighed heavily on overseas markets. European markets were broadly lower, with the Stoxx Europe 600 falling 0.8%.

Asian markets were also hit hard. Japan's Nikkei Stock Average slumped 2.6% to a nearly two-month low, while China's Shanghai Composite lost 0.6%.

September crude-oil futures lost 2% to settle at $104.96 a barrel, while August gold futures added 0.5% to settle at $1,373.10 an ounce. The dollar eased against both the euro and the yen.

J.C. Penney climbed six%. The department-store operator reported a wider-than-forecast fiscal second-quarter loss, but signs of improvement in same-store sales trends helped prop the shares up.

TJX Cos, the operator of T.J. Maxx and Marshall's discount stores, advanced 6.9% after raising its profit and same-store sales forecasts for the year.