Stocks Edge Up Ahead of Earnings News
Tuesday April 10, 10:14 am ETBy Tim Paradis, AP Business Writer
Stocks Rise As Investors Await Word on Earnings, Fed Governors' Speeches
NEW YORK (AP) -- Stocks edged higher Tuesday as investors remained cautious ahead of a parade of first-quarter earnings reports that kick off when Alcoa Inc. reports after the closing bell.
The aluminum producer is expected to post a profit of 75 cents per share. Wall Street looks to results from the component of the Dow Jones industrial average to not only gauge the pace of earnings for the quarter but as a proxy for the health of the overall economy.
Stocks showed little overall movement Monday as investors awaited a sense of how companies fared during the first quarter and word on expectations for the coming quarters. In the fourth quarter, Standard & Poor's 500 companies snapped an 18-quarter streak of double-digit profit gains. Wall Street expects profit growth for the S&P 500 will remain in the single digits for the first quarter.
With no major economic data on tap, investors will look to speeches by three Federal Reserve officials to get a better idea of where the central bank stands on inflation and interest rates. A stronger-than-expected jobs report Friday dashed some investors' hopes that the central bank will soon lower interest rates.
In the early trading, the Dow Jones industrial average rose 9.02, or 0.07 percent, to 12,578.16.
Broader stock indicators showed little change. The Standard & Poor's 500 index edged up 1.92, or 0.13 percent, to 1,446.53, and the Nasdaq composite index rose 4.71, or 0.19 percent, to 2,473.89.
Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.73 percent from 4.75 percent late Monday. Gold prices rose, while the dollar slipped against other major currencies after the United States filed two complaints against China at the World Trade Organization over copyright policy and restrictions on the sale of American movies, music and books. The currency is at a two-year low against the euro.
Oil prices rose after selling off Monday following doubts about Iran's comments about its uranium-enrichment achievements. A barrel of light, sweet crude for delivery on the New York Mercantile Exchange rose 36 cents to $61.87.
Fed Governor Frederic Mishkin said in prepared remarks Tuesday that inflation expectations remain \"well anchored\" and said inflationary pressure have been \"falling back again.\"
Later Tuesday, Dallas Fed president Richard Fisher and Philadelphia Fed President Charles Plosser are scheduled to give speeches.
Besides Fed speeches and earnings news, investors are awaiting minutes from the Fed's most recent meeting at which it left short-term interest rates unchanged for the sixth straight time. The Fed stopped raising rates in August, ending a string of 17 straight advances that began in 2004.
Comments issued after the Fed's March meeting sent stocks soaring; many investors saw the Fed as indicating it was opening the door to a rate cut.
In corporate news, Dow Chemical Co. fell $1, or 2.1 percent, to $45.63 after the chemical and plastics maker said it has had no discussions about a leveraged buyout. A British newspaper reported over the weekend that a group of Middle Eastern investors and U.S. buyout firms was preparing a $50 billion bid.
Advancing issues outnumbered decliners by about 9 to 5 on the New York Stock Exchange, where volume came to 137.2 million shares.
The Russell 2000 index of smaller companies rose 2.05, or 0.25 percent, to 813.69.
Overseas, Japan's Nikkei stock average closed down 0.45 percent. In afternoon trading, Britain's FTSE 100 rose 0.35 percent, Germany's DAX index rose 0.55 percent, and France's CAC-40 rose 0.18 percent.
New York Stock Exchange: http://www.nyse.com
Nasdaq Stock Market: http://www.nasdaq.com
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