NEW YORK (CNN/Money) - U.S. stocks opened higher early Tuesday -- after falling sharply in the previous session -- amid a spate of blue-chip earnings news and war worries ahead of President Bush's State of the Union address this evening.

Around 9:35 a.m. ET, the Nasdaq composite (up 12.39 to 1337.66, Charts), Dow Jones industrial average (up 61.09 to 8050.65, Charts) and the Standard & Poor's 500 index (up 7.23 to 854.71, Charts) all posted modest gains.

On Monday, the Dow hit new 3-1/2 month lows, crossing below 8,000, while the Nasdaq erased the last of its gains for 2003. An uptick in the market following the slide would not be out of the ordinary, analysts said.

A number of Dow components reported earnings early Tuesday. Procter & Gamble (PG: up $1.51 to $84.56, Research, Estimates) reported improved over the year-earlier quarter and edged estimates, while DuPont (DD: up $0.39 to $38.85, Research, Estimates) reported a sharp drop in fourth-quarter profit on depressed chemical demand and higher energy costs.

SBC Communications reported a lower quarterly profit that was in line with estimates, while Merck reported improved quarterly earnings that met estimates. The company also raised its forecast for 2003.

But the stock bounce was only a temporary distraction from global concerns, as investors look to President Bush's State of the Union address, due in the evening. The speech is expected to make the president's case for military action against Iraq as well as to address some of the country's economic concerns.

On Monday, the U.N. weapons inspectors' report painted a dour picture, saying that the Iraqi regime has made some mild attempts at cooperating, but that there are many unanswered questions. The inspectors are expected to provide a follow-up report on February 14.

Also threatening a bounce was the day's economic news. Durable goods orders in December rose by 0.2 percent, up from November's 1.5 percent decline but well below the 1 percent that economists polled by Briefing.com expected.

Tuesday also marks the start of the two-day meeting of the Federal Reserve's policy-setting Federal Open Market Committee.

European markets fell at midday, while Asian-Pacific stocks ended mixed Tuesday, with Tokyo's Nikkei index down 1 percent.

Treasury prices were little changed in early trading, with the 10-year note yield at 3.96 percent. The dollar rose against the euro and gained a little ground against the yen.

Brent oil futures rose 34 cents to $30.20 a barrel in London. Gold pulled back below the $370 an ounce level reached Monday.