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U.S stocks rise on hopes for solid earnings; Dow gains 0.59%

Published 07/08/2013, 04:28 PM
Updated 07/08/2013, 04:29 PM
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Investing.com - U.S. stocks rose on Monday on hopes that second-quarter earnings will come in healthy and signal the arrival of more robust economic growth in the U.S.

At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.59%, the S&P 500 index ended up 0.53%, while the Nasdaq Composite index rose 0.16%.

After the closing bell, U.S. metals giant Alcoa kicked off earnings season by reporting April-June earnings of USD0.07 per share and USD5.85 billion in revenue, beating expectations of USD0.06 and revenue of USD5.83 billion.

Hopes for solid numbers pushed stocks higher throughout the session that came one trading day after better-than-expected U.S. jobs numbers hit the wire.

Official U.S. data released Friday showed the economy added 195,000 nonfarm payrolls in June, well above analysts' calls for a 165,000 increase.

May's figure was revised upwards to 195,000 jobs from 175,000, while April's figure was revised upwards to 199,000 from 149,000.

The headline unemployment rate remained unchanged at 7.6% last month, while hourly earnings rose 0.4% compared to market calls for a 0.2% gain.

The numbers extended Friday's gains into Monday despite building speculation that monetary stimulus measures are on their way out by next year.

The Federal Reserve is currently buying USD85 billion in Treasuries and mortgage securities each month to push down borrowing cross across the economy and drive recovery, a monetary stimulus tool known as quantitative easing that weakens the greenback and makes assets like stocks rise.

Talk of the end of stimulus tools often sends stocks falling, though stocks finished Monday higher on hopes that the end of stimulus means the beginning of a more robust period of economic expansion.

Leading Dow Jones Industrial Average performers included UnitedHealth Group, up 2.12%, Wal-Mart Stores, up 1.99%, and Bank of America, up 1.68%.

The Dow Jones Industrial Average's worst performers included Intel, down 3.66%, Hewlett-Packard, down 1.64%, and AT&T, down 0.70%.

European indices, meanwhile, finished higher.

After the close of European trade, the EURO STOXX 50 rose 2.11%, France's CAC 40 rose 1.86%, while Germany's DAX 30 finished up 2.08%. Meanwhile, in the U.K. the FTSE 100 finished up 1.17%.








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