Wall Street edged higher in an erratic session Monday as investors were reassured by a drop in Treasury bond yields yet still remained cautious ahead of second-quarter earnings season, which kicks off this week.
The Dow Jones industrial average rose 38.29 points, to 13,649.97. The Standard & Poor’s 500 index gained 1.41, to 1531.85, and the Nasdaq composite index added 3.51, to 2670.02. The Russell 2000 index of smaller companies advanced 0.93, to 853.24.
Investors were looking to corporate earnings to help give the market some direction in the coming weeks. Reports had their unofficial start after the closing bell when Alcoa Inc. released results that matched analysts’ estimates.
In the meantime, Wall Street found some solace as the yield on the benchmark 10-year Treasury note dipped to 5.15 percent from 5.18 percent Friday. There had been some concern that the steady rise in bond yields since June would crimp dealmaking.
“There’s just not much earnings or economic news out there, and that has the market bobbing and weaving a little bit,” said Jay Suskind, head trader at Ryan Beck & Co. “Overall, there’s not a real catalyst to move the market one way or another, and I think the market will hover close to home.”
Monday was a light day for economic data. The Federal Reserve reported that consumer credit rose at an annual rate of 6.4 percent in May, far above the small 1.1 percent gain of April and about double what analysts had been expecting.
“This is a really slow data week, with nothing significant out until you see retail sales Friday,” said Brian Gendreau, an investment strategist for ING Investment Management. “We may be entering a period where investors might begin to pay more attention to earnings
FedEx Corp. surged $5.33, or 4.8 percent, to $116.17, on a report the package delivery company could become a target for private-equity buyers because of its modest valuation and turnaround potential, according to Barron’s. The move was FedEx’s largest advance since June 21, 2006.
Chicago-based Boeing Co. rose $1.02, to $99.90, on reports it received more orders for its 787 Dreamliner. The aerospace company on Sunday unveiled the jet, which already has more than $100 billion in orders.
