Markets make cautious gains

U.S. market indexes opened higher Tuesday following gains in Asia and Europe. Markets posted gains despite weak economic data on European service businesses. Researchers at Markit reported the Purchasing Managers Index for services in the 17-member eurozone hit a three-year low in May, coming in at 46.7 with numbers below 50 indicating a contraction. Investors are also keeping an eye on Europe's financial crisis. German Chancellor Angela Merkel signaled a willingness do discuss integrating debt in Europe with a long-term payback plan. In midmorning trading on Wall Street, the Dow Jones industrial average added 17.64 points, or 0.15 percent, to 12,119.10. The Standard & Poor's 500 gained 5.26 points, or 0.41 percent, to 1,283.44. The Nasdaq Composite added 14.29 points, or 0.52 percent, to 2,774.74. The benchmark 10-year treasury note fell 10/32 to yield 1.562 percent. The euro fell to $1.2451 from Monday's $1.25. Against the yen, the dollar hit 78.71 from 78.35 yen. In Tokyo, the Nikkei 225 index added 1.04 percent, 86.37 points, to 8,382.