Stocks Rise As Earnings Reports Top Expectations

IEVA M. AUGSTUMS

NEW YORK (AP) — The stock market stepped to new highs for the year Monday after a handful of earnings reports bolstered hopes that the U.S. economy is coming back sooner than many analysts had thought.

That is helping some investors move past a bout of nerves about whether expectations for the economy are stretched too far. The Dow Jones industrial average rose 96 points, while the Standard & Poor's 500 index rose but ended just shy of 1,100, having topped that level during the day.

Industrial equipment maker Eaton Corp. said it was seeing improvement in key markets and raised its full-year profit forecast. Newspaper publisher Gannett Co. managed to post a profit despite a sharp fall in revenue.

The gains came ahead of quarterly earnings released after the closing bell from Apple Inc. and Texas Instruments Inc. Both wound up beating forecasts.

Apple blew past expectations because of increased sales of the iPhone, while Texas Instruments' profit and sales came in above the improved forecast the chip maker issued just last month. Share of both tech companies gained in after-hours electronic trading.