* Alcoa rises before reporting earnings after market's close
* Tech shares weigh on Nasdaq; Intel at 2 1/2 month low
* Goldman Sachs sees S&P 500 rising to 1,750 at year-end
* Dow up 0.5 pct, S&P 500 up 0.4 pct, Nasdaq flat
By Alison Griswold
NEW YORK, July 8 U.S. stocks mostly rose on
Monday, extending gains after last week's robust June payrolls
report to push the S&P 500 closer to its all-time high set in
May, just before the start of earnings season.
Eight of the 10 S&P 500 industry sector indexes rose,
led by gains in energy, utilities and consumer staples. Consol
Energy was among the S&P 500's best performers, up 3.7
percent at $27.48.
Technology shares fell, weighing on the Nasdaq Composite
Index. Intel Corp was the S&P 500's worst
performer, sliding 3.9 percent to $23.12 after analysts at
Evercore Partners downgraded the company's stock to
"underweight" from "equal weight." The drop took the stock down
to its lowest level since late April.
On Monday, the benchmark S&P 500 was about 2 percent below
its May 21 all-time closing high of 1,669.16. In June, the
benchmark index fell as much as 5.8 percent below that record.
The gains have reassured investors, who worried that a
strong jobs report could trigger a negative reaction from the
Strong economic data increases the likelihood the Federal
Reserve will start to reduce its $85-billion-per-month in
monetary stimulus in the near future. A Reuters poll of firms
that deal directly with the Fed now see the reduction beginning
"The fear of the quantative easing coming to an end, I think
that's dissipated a little bit, so people are now really
weighing that against the economic data," said Paul Brigandi,
senior vice president of trading at Direxion Funds in New York.
"For the moment, the better-than-expected jobs report is
outweighing the fear that the asset purchases could come to an
Interest rates have jumped sharply, with the yield on the
10-year U.S. Treasury note touching 2.7 percent. Higher rates
make borrowing more expensive and stocks less attractive in
terms of valuation.
The Dow Jones Industrial Average was up 70.24 points,
or 0.46 percent, at 15,206.08. The Standard & Poor's 500 Index
was up 6.91 points, or 0.42 percent, at 1,638.80. The
Nasdaq Composite Index was down just 0.15 of a point, or
unchanged on a percentage basis, at 3,479.23.
Dow component Alcoa Inc, the largest U.S. aluminum
producer, unofficially begins 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 rose
0.6 percent to $7.86.
Goldman Sachs analyst David Kostin said in a note sent
Sunday night 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 1,631.89
Analysts expect S&P 500 companies' earnings to rise 2.9
percent in the second quarter from a year ago, while quarterly
revenue is forecast to increase 1.5 percent from a year ago,
according to Thomson Reuters data.
Dell Inc shot up 2.9 percent to $13.40 after
investment advisory firm ISS recommended shareholders vote for
Chief Executive Michael Dell's $24.4 billion buyout offer.
In the biotech sector, Cytokinetics Inc shares fell
1.1 percent to $12.67 after the company disclosed a programming
error in a study of its treatment for amyotrophic lateral