By Kate Gibson
U.S. stocks on Monday stepped modestly higher ahead of the de
facto kickoff of first-quarter earnings season, with aluminium
giant Alcoa Inc. reporting after the market close.
Poised for its first finish above 11,000 since Sept. 26, 2008,
the Dow Jones Industrial Average (DJI) was up 19.95 points, or
0.2%, at 11,017.3, with Alcoa (AA) and Caterpillar Inc. (CAT)
pacing the gains; both were up more than 2%.
The first of the Dow's 30 components to report first-quarter
results, Alcoa is expected to swing to a profit under the steam of
higher aluminium prices and increased demand.
On Wednesday, J.P. Morgan Chase & Co. (JPM) is slated to
release its results in what analysts said should provide a
barometer of financial-sector fiscal conditions.
Other big names set to report results 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 3.86 points, or 0.3%, to
1,198.29, with financials rising the most and materials the laggard
among the index's 10 industry groups.
The Nasdaq Composite Index (RIXF) was up 7.9 points, or 0.3%, at
2,461.95.
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 military
contractor DynCorp International (DCP) getting taken out by
private-equity firm Cerberus Capital Management.
European leaders over the weekend agreed to offer loans to
Greece, helping to ease worries that rising debt in Greece and
other countries in Europe might curb the global economic recovery
and weaken the euro.
Crude-oil futures finished at $84.34 a barrel, and gold futures
ended higher at $1,162.20 an ounce.
Advancers outran decliners roughly 3-2 on the New York Stock
Exchange, where 631 million shares changed hands and composite
trading volume topped 3.6 billion.
On Friday, U.S. stock benchmarks closed out a sixth consecutive
week of gains, taking the Dow industrials above 11,000 intraday for
the first time since late September 2008.