| Business

Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Stocks up on high hopes for corporate earnings

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

By The Associated Press
Monday, July 8, 2013, 7:33 p.m.

NEW YORK — Cautious optimism about corporate earnings sent the stock market higher on Monday.

U.S. companies will start reporting their second-quarter results this week.

Analysts predict that earnings growth for companies in the Standard & Poor's 500 index will come in at 3 percent in the second quarter. While that rate would be down from 5 percent in the first quarter, earnings still are expected to reach record levels.

Investors and traders will search for evidence that companies are increasing revenues, not just cutting costs to boost profits. Sales growth is predicted to fall 0.3 percent in the second quarter.

“We'll be looking to see where revenue comes in,” said Jim Dunigan, an executive vice president of investments at PNC.

The Dow rose 88.85 points, or 0.6 percent, to close at 15,224.69. The Standard & Poor's 500 index gained 8.57 points, or 0.5 percent, to end at 1,640.46.

The Russell 2000 index, an index of small-company stocks, closed at a high of 1,009.25. The index passed the 1,000 mark for the first time on Friday and has gained 19 percent this year, a sign that investors are more willing to take on risk. The gains have outpaced those of the Dow and S&P 500, which are up 16 percent and 15 percent, respectively.

Subscribe today! Click here for our subscription offers.



Show commenting policy

Most-Read Business Headlines

  1. Consol raises $101 million in coal asset sales
  2. ZeroFossil Energy Outfitters powers up with renewable sources
  3. Eat’n Park sells Cura division that serves hospitals and senior living
  4. PNC fined for paperwork errors on municipal bond offerings
  5. Google’s robot cars legally require someone behind wheel, adding novel job
  6. Alcoa lands $1B airplane fastener contract from Airbus
  7. Calgon Carbon inks deals for mercury scrubbing at 9 power plants
  8. Koppers CEO believes struggling company can do better, transform
  9. Kraft Heinz pushes retirees to private health exchanges to cut costs
  10. Power plants challenged by carbon capture and storage
  11. Energy efficiency goes mainstream with help of regulations, demand