* S&P 500's 14-day moving average watched as support
* Alcoa earnings top expectations; stock jumps
* Airlines' shares rally after American's revenue comment
* Dow up 0.3 pct, S&P 500 up 0.3 pct; Nasdaq up 0.5 pct
(Updates to midday)
By Angela Moon
NEW YORK, July 9 U.S. stocks rose on Wednesday,
rebounding from a sharp two-day slide after an early reading on
earnings beat expectations.
Alcoa Inc was one of the S&P 500's biggest advancers,
up 5.7 percent to $15.70 a day after the U.S. aluminum producer
reported adjusted second-quarter earnings and revenue that
topped Wall Street's forecasts.
While the former Dow component is no longer considered a
market-moving industry bellwether, Alcoa is sometimes viewed as
setting the tone for the season because it is one of the first
high-profile names to report earnings.
Wells Fargo & Co, the largest U.S. mortgage lender,
will report results on Friday. The earnings reports of dozens of
closely watched companies, including Dow components, will be
released next week.
The S&P 500 bounced back on Wednesday after its biggest
two-day slump since mid-May, with small-cap and Internet names
among the biggest decliners. With Wednesday's advance, the
benchmark S&P 500 is about 0.8 percent away from a record close
hit last week.
"The market was encouraged by Alcoa, especially since we
were arguably oversold in the very short term," said Steve
Sosnick, equity-risk manager at Timber Hill/Interactive Brokers
Group in Greenwich, Connecticut.
The Dow Jones industrial average rose 45.53 points
or 0.27 percent, to 16,952.15. The S&P 500 gained 5.61
points or 0.29 percent, to 1,969.32. The Nasdaq Composite
added 20.53 points or 0.47 percent, to 4,411.99.
The profits of S&P 500 companies are projected to grow 6.2
percent in the second quarter, according to Thomson Reuters
data, down from the forecast of 8.4 percent at the start of
April. Revenue is expected to rise 3 percent.
The expected growth is "not nothing, but it is nothing to
get too excited about," Jeff Kleintop, chief market strategist
at LPL Financial in Boston, wrote in a note to clients.
"The growth rate supports our outlook for high single-digit
earnings growth in 2014 and further gains for U.S. stocks,"
Kleintop wrote. "But, despite the big show that is likely to be
made over the U.S. earnings season in the coming weeks, it is
not likely to be all that different from last quarter."
Investors awaited the release of minutes from the Federal
Open Market Committee's June meeting at 2 p.m.(1800 GMT). The
minutes will be scrutinized for insight into how soon the
Federal Reserve might raise interest rates as June's strong jobs
report has spurred speculation that a rate increase may come
sooner than anticipated.
American Airlines Group shares climbed 3.9 percent
to $41.82 on heavy volume. The company narrowed the range of its
second-quarter unit revenue growth forecast, raising the low end
and scaling back the high end compared with its previous
forecast in June.
The shares of other airlines rallied after the revenue
projection from American Airlines. Southwest Airlines Co
shot up 1.5 percent to $27.09. Delta Air Lines Inc rose
1.2 percent to $36.88.
(Reporting by Angela Moon; Editing by Jan Paschal)