Wall Street opened higher Tuesday after wholesale inflation data showed abating inflation pressures, keeping the Federal Reserve on track to cut rates in September, while Starbucks soared after appointing Chipotle's Brian Niccol as CEO.

The Dow Jones Industrial Average rose 0.44% shortly after the open, as of 9:40 a.m. EST. The S&P 500 rose 0.84%​, while the Nasdaq Composite rose 1.23%.

Starbucks (SBUX) was up 21.08% on the news Tuesday that Chipotle Mexican Grill's head, Niccol, will replace Chairman and Chief Executive Officer Laxman Narasimhan.

Read Newsmax: Starbucks Names Chipotle's Brian Niccol as CEO | Newsmax.com
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Traders continue to be evenly split between 25- and 50-basis point interest rate cut by the Federal Reserve in September and expect the year-end rate at 4.25%-4.50%, according to CME's FedWatch Tool.

"One could argue that equity is still in recovery mode after last week's shake out, and holding out from really putting money to work until we get the key US data this week, where pricing U.S. growth is still the main game in town," said Chris Weston, head of research at Pepperstone.

Also, on investors' radar will be comments from Atlanta Fed President Raphael Bostic, due at 1:15 p.m. ET, on the outlook for the U.S. economy.

Results from retailer Home Depot will also be closely watched to assess the health of the American consumer ahead of retail sales data on Thursday.

Wall Street's fear gauge, CBOE Volatility Index was at 20.14 points after falling 18.87 on Monday.

Roger Federer-backed On Holding beat analysts' estimates for second-quarter revenue on Tuesday on strong demand from customers looking for trendy products, but shares fell nearly 9% premarket after the company reiterated its annual sales forecast.

BuzzFeed rose 14.8% after the digital media company narrowed its net loss in the second quarter to $6.6 million from $22.5 million a year earlier.