Best Buy shines as US stocks edge higher

US stocks edged higher Tuesday, but the tone of trade remained cautious ahead of Federal Reserve Chair Janet Yellen's speech on the economy at the end of the week.

Electronics retailer Best Buy grabbed the most attention, rocketing 19.4 percent after its second quarter profits handily beat forecasts and the company boosted its outlook for the rest of the year.

But drugmaker Mylan Pharmaceuticals sank 4.8 percent after US legislators called for probes into the skyrocketing price of its near-monopoly EpiPen, which severe allergy sufferers use to counter extreme allergic reactions.

At the closing bell, the Dow Jones Industrial Average was up 0.1 percent at 18,547.30.

The broader S&P 500 added 0.2 percent at 2,186.90, while the Nasdaq Composite gained 0.3 percent at 5,260.08.

Wall Street followed European shares higher, supported by August purchasing managers index readings for the eurozone that suggested that Britain's June vote to exit the European Union has had little concrete economic impact so far.

But traders were careful as analysts wait to see what tone Yellen sets for US monetary policy and future rate hikes at the Fed's central banking symposium in Jackson Hole, Wyoming on Friday.

"In the newsflow, nothing gave anyone a reason to sell or to do too much in the market," said Mace Blicksilver of Marblehead Asset Management.

"We have had a gentle breeze up since late June. And at the moment, there is nothing to slow it."

Nike topped gainers on the Dow, adding 1.6 percent after making a strong splash at the Brazil Olympics.

Walmart led the Dow losers with a 1.0 percent fall.