Stocks ended up split on Wall Street as gains for technology companies were offset by losses elsewhere.
"The big multinational, industrial companies of the world are all taking a hit on the concern that they will be the targets of reprisal sanctions", said Robert Phipps, a director at Per Stirling Capital Management in Austin. Construction equipment maker Caterpillar dipped $2.36, or 1.56 percent, to $155.89.
About 25 minutes into trading, the Dow Jones Industrial Average was at 25,406.97, up 0.3 per cent.
The S&P 500 in response is just 3 percent below record highs hit on January 26 while the Nasdaq is back to a record.
South Korea rose one per cent while Japan's Nikkei jumped 1.2 per cent, showing little immediate reaction as Prime Minister Shinzo Abe came under renewed fire over suspicions of cronyism involving the sale of state-owned land. Pressuring the blue chip market was a more than 2 percent drop in shares of Boeing, Caterpillar and United Technologies.
The Dow Jones industrial average fell on Monday as investors anxious a trade war could develop after President Donald Trump implemented tariffs on steel and aluminum imports. Core CPI is also expected to rise by 0.2%, down from the previously reported 0.3%.
ENERGY: Benchmark U.S. crude declined 74 cents, or 1.2 percent, to $61.30 a barrel in NY.
The S&P 500 fell 2 points, less than 0.1 percent, to 2,784. The Dow Jones Small-Cap Growth TSM Index closed at 9,974.43 for a gain of 19.39 points or 0.19%.
The Dow closed lower on Monday after giving up a gain of more than 100 points.
The yield on the 10-year US Treasury note hovers at 2.890% compared with 2.894% on Friday.
Stocks were trending higher before the open in extension of Friday's rally that was unleashed by friendly labor market data.
Starbucks rose 1.4 percent early Monday and Micron Technology rose 5.3 percent.
Traders should also watch for volatility because the CPI inflation data could be bullish for stocks, but trade war news could be bullish.
BATTERIES INCLUDED: Johnson Controls climbed early on after it said it will consider selling its power solutions business, which makes batteries for vehicles among other products.
ALL EYES ON TECH: Optical communications company Oclaro surged after it agreed to be bought by optical networking company Lumentum Holdings.
Ten of the 11 major S&P sectors were higher, led by 0.62 per cent gain in consumer discretionary stocks.
The Dow Jones industrial average rose 71 points, or 0.3 percent, to 25,410.
European markets were higher today, with the Spanish Ibex Index rising 0.56 percent, STOXX Europe 600 Index gaining 0.37 percent and German DAX 30 index gaining 0.75 percent.