NEW YORK (AP) — Cautious optimism about corporate earnings sent the stock market higher Monday.
U.S. companies start reporting their second-quarter results this week, led by aluminum producer Alcoa.
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 are still 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.