By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rose on Monday, extending
gains into a third session, as Wall Street looked to Alcoa Inc. to
begin the second-quarter earnings reporting season.
Alcoa (AA) shares rose 0.3%. The aluminum producer and Dow
component will release 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 six
cents in its second-quarter, but one week ago the estimate was nine
cents, a month ago 11 cents and three months ago 14 cents.
"So, if Alcoa reports seven or eight cents a share today, is
that really a positive surprise?" Raich said.
And, while Alcoa's earnings mark the unofficial start of
earnings season, results from major U.S. banks could set the tune
in coming weeks.
After climbing 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 the rise that included 27 of its
30 members.
The S&P 500 index (SPX) rose 10.33 points, or 0.6%, to
1,642.22, with energy pacing the gains among its 10 major
sectors.
The Nasdaq Composite (RIXF) advanced 8.88 points, or 0.3%, to
3,488.21.
For every three shares on the decline, seven rose on the New
York Stock Exchange, where 136 million shares traded as of 10:30
a.m. Eastern.
Composite volume hit 626 million.
On the New York Mercantile Exchange, oil futures for August
delivery (CLQ3) fell 0.4% to $102.78 a barrel and gold futures for
August delivery (GCQ3) rose 1.9% to $1,235.40 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 2.656%.
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 on 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. (DELL) shares gained 2.4% after Institutional
Shareholder Services Inc. urged approval of founder Michael Dell's
buyout proposal for the computer company.
Priceline.com (PCLN) shares rose 2.4% after Morgan Stanley
upgraded its shares to overweight.
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