* Alcoa rises before reporting earnings after market's close
* Proxy firm recommends Michael Dell's buyout offer
* Goldman Sachs sees year-end S&P rising to 1,750
* Indexes up: Dow 0.49 pct, S&P 500 0.46 pct, Nasdaq 0.41
By Chuck Mikolajczak
NEW YORK, July 8 U.S. stocks rose on Monday,
putting the S&P 500 on pace for its third straight advance after
a robust June payrolls report and before the start of quarterly
earnings reports after the market's close.
The benchmark S&P index rose 1 percent on Friday
after government data showed the economy created more jobs than
expected, pointing to growth. But many traders were away,
extending Thursday's Independence Day holiday. Volume was light
and trading volatile.
"Today we will get a better read, but we do have (Friday's
gains) to work with, so we are already in the green on that
data," said Peter Kenny, chief market strategist at Knight
Capital in Jersey City, New Jersey.
"Any shift lower from here would not necessarily be a vote
of no confidence or a vote of caution for the market."
Dow component Alcoa Inc, the largest U.S. aluminum
producer, unofficially kicks off the earnings season after the
market's close. The company is expected to report earnings of 6
cents per share on revenue of $5.83 billion. Alcoa shares edged
up 0.4 percent to $7.84.
Goldman Sachs analyst Davis Kostin said in a note to clients
that rising earnings, coupled with stable margins, should lift
the S&P 500 by 8 percent to Goldman's year-end target of 1,750.
The index ended at 1,632 on Friday.
The Dow Jones industrial average gained 74.89 points,
or 0.49 percent, to 15,210.73. The Standard & Poor's 500 Index
gained 7.52 points, or 0.46 percent, to 1,639.41. The
Nasdaq Composite Index gained 14.35 points, or 0.41
percent, to 3,493.73.
Analysts' expectations call for S&P 500 earnings growth to
rise 2.9 percent in the second quarter from a year ago, while
quarterly revenue is forecast to increase 1.6 percent from a
year ago, according to Thomson Reuters data.
"This earnings season the big question, more than it has
been in four years, is going to be top line and revenue growth -
not financial engineering, not cost savings, not cost cutting.
Where is the organic growth that leads to not just stabilization
but a sense there is a demand component to this?" said Kenny.
Later in the week, earnings are expected from JPMorgan Chase
& Co and Wells Fargo & Co.
Dell Inc climbed 2.2 percent to $13.31 after
investment advisory firm ISS recommended shareholders vote for
Chief Executive Michael Dell's $24.4 billion offer for the PC
maker. The S&P technology sector rose 0.3 percent.
Cytokinetics Inc shares slumped 6.6 percent to
$11.97 after the company disclosed a study programming error in
its amyotrophic lateral sceloris treatment, Tirasemtiv.