ARNC Arconic Corporation

By Joseph Adinolfi and Sara Sjolin, MarketWatch

Aluminum makers shares slide 4.6% after weak earnings

U.S. stocks traded slightly higher on Tuesday as rising oil prices offset any lingering disappointment from Alcoa Inc.'s lackluster start to earnings season.

The Dow Jones Industrial Average rose 79 points, or 0.5% to 17,642.33, led by strong gains from Caterpillar Inc. (CAT)

The S&P 500 index added 7.3 points, or 0.4%, to 2,049.31, led by the energy and financials sectors. The Nasdaq climbed 5.3 points, or 0.1%, to 4,838.77.

All three benchmarks fell on Monday, (http://www.marketwatch.com/story/stock-futures-rise-as-dollar-steadies-investors-wait-for-alcoa-2016-04-11) erasing early gains in afternoon trade as investors braced for the start of what's expected to be a difficult earnings season. The declines came ahead of the closely watched first-quarter earnings report from Alcoa(AA), considered the unofficial start of the U.S. earnings season, released after the market close.

The aluminum giant posted a 92% drop (http://www.marketwatch.com/story/alcoa-hurt-by-weak-aluminum-prices-2016-04-11-174853616) in profit and lowered its 2016 outlook for the aerospace market. Its shares were down 4.6% Tuesday.

"U.S. earnings season is under way, and first indications are that this could live up to its billing as one of the worst in years," said Lee Wild, an editor at stockbroker Interactive Investor, in a note.

"However, with the bar set so low, there could be some surprises," he said.

Analysts are expecting J.P. Morgan Chase & Co. to report its first year-over-year earnings decline (http://www.marketwatch.com/story/what-to-expect-from-jp-morgan-chase-earnings-2016-04-11) in five quarters ahead of the bell on Wednesday.

What to watch: S&P 500 earnings for the first quarter are forecast to slide 8.3% year-over-year, S&P Global Market Intelligence said in a report. That would mark a third quarterly decline in a row, it said.

"Such a steep decline in growth hasn't been recorded since Q2 2009," the report said.

Only three of the 10 S&P sectors are projected to see a rise in earnings, with the consumer discretionary, telecommunications and health care sectors leading for the fourth quarter in a row, S&P said.

Read:Here's why banks are the black sheep of this earnings season (http://www.marketwatch.com/story/heres-why-banks-are-the-black-sheep-of-this-earnings-season-2016-04-11)

The pace of earnings releases continues to ramp up on Tuesday, with transportation company CSX Corp. (CSX) slated to post results after the bell.

Oil rally: After a wobbly start to the day, oil futures traded higher on Tuesday on hopes that key oil producers will agree on an output freeze at their meeting this Sunday.

U.S.-traded crude oil (http://www.marketwatch.com/story/oil-prices-dip-as-investors-cash-in-on-overnight-surge-2016-04-12) and Brent crude , the global benchmark, rose, helping lift shares of energy-related companies, with Transocean Ltd. (RIG), Chesapeake Energy Corp. (CHK) and Anadarko Petroleum Corp. (APC) rising in early trade.

Data and Fed speakers: Philadelphia Fed President Patrick Harker told the Greater Philadelphia Chamber of Commerce that it makes sense to delay another interest rate increase (http://www.marketwatch.com/story/feds-harker-backs-delaying-another-interest-rate-hike-until-inflation-picks-up-2016-04-12) until inflation picks ups. Harker is not a voting member of the Fed's policy-setting committee this year.

A weaker dollar and higher oil prices helped drive U.S. import prices higher in March. Data about the federal budget is expected at 2 p.m. Eastern.

The NFIB small-business index slipped to a two-year low in March (http://www.marketwatch.com/story/small-business-sentiment-falls-to-two-year-low-nfib-says-2016-04-12).

San Francisco Fed President John Williams, also a non-voter, will speak in San Francisco at 3 p.m. Eastern.

Finally, Richmond Fed President Jeffrey Lacker, another non-voter, will speak about "economic leadership in an uncertain world" at the University of North Carolina at Wilmington at 4 p.m. Eastern.

Movers and shakers: Wholesale distributor Fastenal Co.(FAST) reported its profit was 1.1% lower in the first quarter of the year amid weakness in its core business of making fasteners. Its shares slumped 3.2%.

Perry Ellis International Inc. (PERY) shares rose 1.2% after the company said its margins benefited from its domestic menswear business (http://www.marketwatch.com/story/perry-ellis-narrows-loss-as-margins-expand-2016-04-12).

Shares of Marathon Oil Corp.(MRO) rose 2.3% after the oil production company said late Monday that it plans to sell $950 million worth of assets (http://www.marketwatch.com/story/marathon-plans-950-million-asset-sale-2016-04-11), and vowed to focus on lower-risk U.S. resources to protect its balance sheet against the oil price slump.

Hertz Global Holdings Inc. (HTZ) shares slumped 1.8% after the car rental company late Monday cut its 2016 outlook on U.S. car rental revenue (http://www.marketwatch.com/story/hertz-cuts-2016-outlook-on-us-car-rental-revenue-2016-04-11-84852736).

Shares of Juniper Networks Inc. (JNPR) shares plummeted 9.4% after it cut its outlook for the first quarter (http://www.marketwatch.com/story/juniper-networks-shares-fall-on-cut-outlook-2016-04-11).

Other markets: Asia markets closed mostly higher (http://www.marketwatch.com/story/nikkei-lifted-by-weaker-yen-as-shanghai-stocks-slip-2016-04-12), with Japan's Nikkei 225 index getting a boost from a weaker yen (http://www.marketwatch.com/story/dollar-rises-after-japans-finance-minister-fires-a-warning-shot-over-yen-2016-04-12). The dollar edged higher against its main rivals (http://www.marketwatch.com/story/dollar-rises-after-japans-finance-minister-fires-a-warning-shot-over-yen-2016-04-12).

Stocks in Europe (http://www.marketwatch.com/story/european-stocks-choppy-as-italian-banks-rise-luxury-shares-pull-back-2016-04-12) were mixed, while metals rose across the board.

(END) Dow Jones Newswires

April 12, 2016 09:53 ET (13:53 GMT)

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