This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Stocks Gain as Alcoa Beats on Profit

NEW YORK (TheStreet) -- U.S. stocks closed higher on Monday on expectations quarterly earnings reports that begin this week will exceed forecasts.

The S&P 500 finished up 0.6% to 1,563.07 after posting the biggest weekly decline of the year last week. Aluminum maker Alcoa (AA), citing increased demand from U.S. carmakers, extended its gain in post-market trading after reporting net income that beat analysts' expectations.

Shares of Alcoa rose in after hours trading after the company said net income for the three months ended March 31 rose to 11 cents ex-items, from 10 cents a share during the same time last year, beating an 8 cent analyst estimate. Sales for the quarter fell to $5.83 billion from $6.01 billion a year ago, missing the $5.88 billion an average of analysts polled by Thomson Reuters.

Alcoa shares rose 1.8% to $8.39 during the regular session.

The Dow Jones Industrial Average was off 0.31% to 14,566.91. The Nasdaq was gaining 0.25% at 3,211.89.

BioCryst Pharmaceuticals (BCRX) surged 12.9% to $1.92 as the developer of anti-influenza drug Peramivir got a boost after China's Food and Drug Administration on Friday said it expedited its approval of the drug amid reports of rising bird flu infections in China.

Lufkin Industries (LUFK) soared 37.6% to $87.96 after General Electric (GE) announced a deal Monday to buy the Lufkin, Texas-based oil services equipment manufacturer for $3.3 billion.

EDAC Technologies (EDAC) slumped 4.3% to $17.73 after private equity firm MidOcean Partners on Sunday withdrew its $18.25 a share bid on the Farmington, Conn.-based aerospace and industrial applications components supplier for undisclosed reasons.

No major U.S. economic releases were scheduled for Monday.

Todd Salamone, vice president of research at Schaeffer's Investment Research in Cincinnati, said in a note Saturday that while April began with a whimper, things could have been worse given the amount of uncertainty plaguing the global markets. He said technical support levels remain resilient amid rising skepticism, with bulls still "quietly in control."

Meanwhile, his colleague, Rocky White, a quantitative analyst at Schaeffer's Investment Research, wrote Saturday that although earnings season is being approached with skepticism, the skepticism suggests that companies will have a lower bar to jump.

White's analysis of the most recent weekly sentiment survey released by the American Association of Individual Investors shows that 35.5% of investors are bullish, which also indicates some pessimism from investors. This "is good news for the upcoming earnings season."

The benchmark 10-year Treasury was sliding 9/32, boosting to the yield to 1.746%. The dollar was rising 0.24% to $82.77 according to the U.S. dollar index.

May crude oil futures settled up 66 cents to $93.36 a barrel on the New York Mercantile Exchange.

Written by Andrea Tse and Joe Deaux in New York

>To contact the writer of this article, click here: Andrea Tse.

Stock quotes in this article: ^DJI, ^GSPC, ^IXIC, GE, LUFK, BCRX, EDAC 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs