US STOCKS-Wall St higher ahead of earnings season
* Slovak parliament to vote on euro zone rescue fund* Indexes up: Dow 0.1 pct, S&P 0.2 pct, Nasdaq 0.7 pctBy Ashley LauNEW YORK, Oct 11 (Reuters) - Wall Street stocks rose on
Tuesday as traders took positions in beaten-down shares ahead
of the start of the earnings season.But gains were held in check as investors were cautious
before a key vote by Slovakia on expanding the euro zone rescue
fund.The S&P 500 has risen 8.7 percent in the last five days,
the best move in that period of time since March 2009,
recovering from steep losses tied to worries about the euro
zone debt crisis.With earnings season beginning after the close of trading
with Alcoa’s report, investors hoped for more gains.”We’re seeing positive momentum ahead of earnings season
here,” said Wayne Kaufman, chief market strategist at John
Thomas Financial in New York. “The market was overshot on the
downside and now we’re making it up to a certain degree.
Valuations are at levels where stocks should be much higher.”The Dow Jones industrial average was up 7.26 points,
or 0.06 percent, at 11,440.44. The Standard & Poor’s 500 Index added 2.15 points, or 0.18 percent, at 1,197.04. The
Nasdaq Composite Index put on 17.25 points, or 0.67
percent, at 2,583.30.Europe remained a wild card. With all the other euro zone
states having ratified a pact to boost the size and powers of
the European Financial Stability Facility bailout fund, all
eyes turned to Slovakia.Slovakia’s lawmakers began debate on the issue and its
finance minister said the country was expected to approve the
changes this week.Any more delays in coming up with a plan intended to stem a
financial crisis could give the market an excuse to sell down
the road.Investors shifted their focus to upcoming earnings, with
results due from top U.S. aluminum producer Alcoa Inc
after the closing bell. Alcoa’s stock was up 2.7 percent to
$10.35, making it the best performer on the Dow.”Expectations are so low that Alcoa doesn’t have to say a
lot in order to beat expectations,” said King Lip, chief
investment officer at Baker Avenue Asset Management in San
Francisco. “Everyone expects a double-dip recession, so all you
need is a little bit of good news and markets could take off on
that.”In the past week, analysts have lowered their consensus
earnings estimates for Alcoa, citing a precipitous drop in
metals prices in recent months sparked by global economic
concerns.At midday, about one stock advanced for every decliner on
the New York Stock Exchange and the Nasdaq. About 2.87 billion
shares were traded on the New York Stock Exchange, NYSE Amex
and Nasdaq, lower than average.