By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks mostly rose Monday,
extending gains for the S&P 500 into a third session, as Wall
Street looked to Alcoa Inc. to begin the second-quarter earnings
reporting season.
Alcoa shares (AA) rose 0.3%. The aluminum producer and Dow
component is slated to release its quarterly results after the
market close.
"Alcoa has been notorious for reporting manufactured earnings
surprises" in the past, Nick Raich, CEO at the Earnings Scout,
wrote in an email. He noted that Alcoa is expected to earn 6 cents
in its second quarter, but one week ago the estimate was 9 cents, a
month ago 11 cents and three months ago 14 cents. "So, if Alcoa
reports 7 or 8 cents a share today, is that really a positive
surprise?" Raich said.
And, while Alcoa's earnings mark the start of earnings season,
results from major U.S. banks could call the tune in the coming
weeks. (Related blog post: What Alcoa's first-in-line status each
earnings season means.)
After climbing as much as 126 points, the Dow Jones Industrial
Average (DJI) was lately up 109.38 points, or 0.7%, at 15,245.38,
with Wal-Mart Stores Inc. (WMT) leading a rise that included 25 of
its 30 members.
Chip maker Intel Corp. (INTC) led blue-chip decliners, with its
shares down 3.6% amid downgrades by a trio of analysts.
The S&P 500 index (SPX) rose 6.94 points, or 0.4%, to
1,638.83, with energy pacing the gains among its 10 major
sectors.
The Chicago Board Options Exchange Volatility Index (VIX) ,
which moves in the reverse direction of the S&P 500 much of the
time, rose 1.8%.
Erasing gains, the Nasdaq Composite (RIXF) held steady at
3,479.21.
For every share in decline, nearly two were on the rise on the
New York Stock Exchange, where 270 million shares had traded as of
12:40 p.m. Eastern.
Composite volume neared 1.4 billion.
On the New York Mercantile Exchange, oil futures for August
delivery (CLQ3) were near flat at $103.18 a barrel, and gold
futures for August delivery (GCQ3) rose 1.8% to $1,234.6 an
ounce.
The dollar (DXY) gained against other currencies, including the
yen (USDJPY), and U.S. Treasury yields fell, with the benchmark
10-year-note yield (10_YEAR) at 2.661%.
The S&P 500 climbed 1.6% last week after
better-than-expected economic reports curbed worry about a
potential reduction in Federal Reserve stimulus. The central bank's
intentions could become more apparent when the Federal Open Market
Committee releases minutes from its June meeting Wednesday.
The June jobs report had employers adding more jobs than
projected. Other reports showed jobless claims declining and the
manufacturing sector improving.
Dell Inc. shares (DELL) gained 2.8% after Institutional
Shareholder Services Inc. urged approval of founder Michael Dell's
buyout proposal for the computer company.
Shares of Priceline.com (PCLN) rose 2.9% after Morgan Stanley
upgraded shares to overweight.
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