* FedEx up 7 pct, one of day's biggest gainers
* Tesla climbs on news it will be added to Nasdaq 100 index
* Dow up 0.4 pct, S&P 500 up 0.6 pct, Nasdaq up 0.4 pct
By Alison Griswold
NEW YORK, July 9 U.S. stocks rose on Tuesday,
carrying the S&P 500 closer to all-time highs and putting it on
track for a fourth straight advance as earnings season got under
Nine of the S&P's 10 industry sector indexes were higher.
Industrial and material shares recorded the biggest gains,
though Alcoa Inc, the first Dow component to release
results for the second quarter, declined 0.5 percent after
releasing earnings after Monday's close.
FedEx Corp was the S&P 500's best performer,
climbing 7.2 percent to a four-month high of $105.93. The stock
was trading at four times its average daily volume.
The benchmark S&P now sits just about 1 percent from its
all-time closing high of 1,669.16 reached on May 21 as earnings
season ramps up.
"Whether we go through the 1,650 level is key, and if we do
then we probably get a retest of the May highs," said Dave
Chojnacki, market technician at Street One Financial in
Huntington Valley, Pennsylvania.
For the most part, investors are expecting second-quarter
results to be soft, with weak sales but expectations for a
pick-up later in the year.
Thomson Reuters data through Tuesday morning showed that
analysts expect S&P 500 companies' earnings to grow 2.9 percent
in the quarter from a year ago, while revenue is forecast to
increase 1.5 percent over the same period.
The Dow Jones industrial average was up 60.63
points, or 0.40 percent, at 15,285.32. The Standard & Poor's 500
Index was up 9.51 points, or 0.58 percent, at 1,649.97.
The Nasdaq Composite Index was up 14.11 points, or 0.40
percent, at 3,498.94.
Alcoa reported adjusted profit and revenue above Wall
Street forecasts after the market's close on Monday. It said it
sees solid growth in global demand for its products this year.
The results increased confidence about the earnings season.
Analysts said institutional and retail investors have
returned to the market. The latest rally has come on the heels
of a better-than-expected June jobs report on Friday.
Volatility has plunged in recent weeks on waning fears about
imminent reductions in the Federal Reserve's $85 billion a month
of bond purchases. The Market Volatility Index, Wall
Street's favorite barometer of investor fear, has tumbled more
than 30 percent since late June.
The earnings calendar remains light until Friday when
JPMorgan Chase and Wells Fargo are set to
Tesla Motors Inc jumped 1.9 percent to $123.91 as
Nasdaq OMX Group Inc said it will replace Oracle Corp
in the Nasdaq 100 stock index, reflecting the rising
profile of the U.S. electric car maker.
Intuitive Surgical shares slid 17.5 percent to
$412.49 after the maker of the Da Vinci surgical robot said on
Monday it expects second-quarter revenue below analysts'
On Wednesday afternoon, the Fed is scheduled to release the
minutes from its June policy meeting. Investors will eye the
minutes for any clues into the timing of possible trimming of