Stocks edged slightly higher on Tuesday as investors were cheered by a recovering dollar and moderating oil prices.

The dollar struck a two-month high against the yen, but fell against the euro after two days of gains. A barrel of light crude closed at $45.40, up 12 cents, on the New York Mercantile Exchange.

The Dow Jones Industrial Average was up 8.87 points, or 0.1 percent, ending the day at 10,724.63. The Standard & Poor’s 500 Index was up just 0.58 of a point, a tenth of a percent, to close 1,202.30. The Nasdaq Composite Index finished the day at 2,086.68, up 4.65 points, or 0.2 percent.

Among local companies, shares of Diodes Inc. jumped 8.3 percent to settle at $26.72 after the Westlake Village-based semiconductor company’s stock rating was upgraded to “buy” from “hold” by Stanford Research. The 12-month price target was set at $32 per share. Diodes had released favorable fourth-quarter earnings on Monday.

And Stamps.com Inc. rose 4.4 percent to $14.42 after its stock was rated “strong buy” in new coverage by Matrix USA.

On the down side, Chad Therapeutics Inc. plunged 15 percent to close at $4.59 after the Chatsworth-based respiratory care device maker released third-quarter earnings. For the third quarter ended Dec. 31, the company reported net earnings of $505,000 (5 cents per diluted share), versus $418,000 (4 cents) for the year-earlier quarter. Revenues increased 23 percent to $6.4 million in the fourth quarter of 2004 from $5.2 million in the year-ago period.

And Keystone Automotive Industries Inc. dropped 2.3 percent to $22.97 after the Pomona-based auto-body parts distributor announced third-quarter earnings. For the third quarter ended Dec. 31, the company reported net income of $4 million (25 cents per diluted share), compared with $4.5 million (29 cents) for the year-earlier quarter. Net sales rose 8.2 percent to $136.6 million from $126.3 million in the year-ago period.