Market gains modestly; Intel rises late

By Ryan Vlastelica

NEW YORK (BestGrowthStock) – Stocks eked out a gain on Tuesday as investors looked ahead to earnings from big banks and tech bellwethers, even as disappointing revenue from Alcoa Inc (AA.N: ) acted as a headwind.

With the Standard & Poor’s index up about 40 percent over the past year, some analysts say stock gains during earnings season could be minimal as equities tend to do worse in earnings periods after making gains in anticipation of strong results.

Alcoa late on Monday reported revenue that failed to meet expectations, sending its stock down 3.2 percent to $14.11.

“Alcoa is just one company, but if that’s the norm, there’s going to be some resistance,” said Paul Kasriel, senior vice president at Northern Trust in Chicago.

The Dow Jones industrial average (.DJI: ) finished up 13 points, or 0.12 percent, at 11,019.42. The Standard & Poor’s 500 Index (.SPX: ) ended up 0.81 point, or 0.07 percent, at 1,197.29. The Nasdaq Composite Index (.IXIC: ) was up 8.12 points, or 0.33 percent, at 2,465.99.

After the market closed, chipmaker and Dow component Intel Corp (INTC.O: ) reported a stronger-than-expected first-quarter profit (Read more your timing to make a profit.), sending its shares 3.8 percent higher to $23.63 in extended-hours trading. Intel rose 0.6 percent to $22.68 in the regular session.

Intel also lifted shares of Advanced Micro Devices (AMD.N: ) and stock index futures, suggesting Intel will boost stocks when the market opens on Wednesday.

CSX Corp (CSX.N: ) rose 1.3 percent to $53.98 in extended trading after the transportation company posted first-quarter earnings that beat expectations.

Even though the Dow closed above 11,000 again, it is poised to encounter formidable resistance ahead, according to market technicians.

Bank shares fell as UBS cut its rating on regional banks including KeyCorp (KEY.N: ), down 1.9 percent at $8.18. A regional bank index (.KRX: ) dipped 1 percent.

Ambac Financial (ABK.N: ) sank 12 percent to $1.98 and was the most actively traded stock on the New York Stock Exchange. Earlier, JPMorgan analysts said that the bond insurer’s stock had little value.

Petrohawk Energy Corp (HK.N: ) agreed to sell half its stake in its Haynesville operations to Kinder Morgan Energy Partners LP (KMP.N: ) for $875 million. Petrohawk shares gained 3.1 percent to $23.32 while Kinder slid 1.5 percent to $66.24.

S&P 500 earnings are expected to rise 37.1 percent in the first quarter from a year earlier, according to Thomson Reuters data.

Among companies reporting, retailer Talbots Inc (TLB.N: ) gained 5.5 percent to $15.18 after posting an adjusted fourth-quarter profit (Read more your timing to make a profit.) that was sharply higher than consensus.

Corporate results scheduled for later this week include JPMorgan Chase & Co (JPM.N: ), Google Inc (Read more about Google Stock Analysis) (GOOG.O: ) and Bank of America Corp (BAC.N: ).

About 9.17 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year’s estimated daily average of 9.65 billion.

There were a roughly equal number of advancing as declining stocks on the New York Stock Exchange, while on the Nasdaq, slightly more stocks rose than fell.

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(Editing by Kenneth Barry)

Market gains modestly; Intel rises late