U.S. stocks are drifting higher Tuesday after more companies said they made bigger profits at the end of last year than analysts expected. The S&P 500 was up 0.5% in midday trading, as many markets around the world took only tentative steps following Donald Trump’s return to the White House on Monday.

Sentiment also was helped by upbeat comments by U.S. and Chinese officials ahead of President-elect Donald Trump's inauguration later Monday. Pledges by both sides to work to improve relations may have alleviated some concerns over trade tensions that have built up as businesses brace for a possible increase in tariffs on Chinese exports to the U.

Asia-Pacific markets trade higher on Monday following a positive conversation between Donald Trump and Chinese leader Xi Jinping ahead of the US President-elect’s inauguration. A surge on Wall Street Friday due to a jump in tech stocks also boosted sentiment.