By Kate Gibson
U.S. stocks on Monday clung to modest gains ahead of
first-quarter earnings, which unofficially kick off after the close
with results from aluminium giant Alcoa Inc.
Back above the 11,000 mark for the second time in as many days,
the Dow Jones Industrial Average (DJI) was up 20.79 points at
11,018.14, with Alcoa (AA) and Caterpillar Inc. (CAT) pacing the
gains, both up around 2%.
The first of the Dow's 30 components to report results, Alcoa is
expected to swing to a profit amid higher aluminium prices and
increased demand. .
Other big names this week on the earnings calendar include blue
chips Intel Corp. (INTC), Bank of America Corp. (BAC) and General
Electric Co. (GE),
"By the end of the week, we should have a reasonable idea of
whether investors' high expectations for terrific earnings
reflected in recent stock price gains over the last eight weeks
have been warranted," said Fred Dickson, chief market strategist at
Davidson Co.
The S&P 500 Index (SPX) rose 2.76 points to stand at
1,197.13, with energy rising the most and health care the greatest
laggard among the index's 10 industry groups.
The Nasdaq Composite Index (RIXF) was up 2.9 points at
2,456.95.
Activity on the corporate M&A front also bolstered
sentiment, with Mirant Corp. (MIR) agreeing to acquire rival power
firm Reliant Energy Inc. (RRI) for $1.61 billion and with military
contractor DynCorp International (DCP) getting taken out by private
equity's Cerberus Capital Management.
Also coloring the action on Wall Street, European leaders during
the weekend agreed to offer loans to Greece, helping ease worries
that rising debt in Greece and other countries in Europe might curb
the global economic recovery and weakening the euro.
Crude-oil futures topped $85 a barrel as gold edged up above
$1,164.00 an ounce.
Advancers outran decliners by a more than 4-3 ratio on the New
York Stock Exchange, where 370 million shares changed hands and
composite topped 2.1 billion.
On Friday, U.S. stock benchmarks climbed to close out a sixth
consecutive week of gains, taking the Dow industrials above 11,000
for the first time since late in September 2008. The Dow didn't,
however, close above the psychologically significant level.