Updated with closing prices.
NEW YORK (
) -- Late-day buying sent stocks to a higher close Monday after earnings subdued the major indices most of the day. That resiliency is what one market-watcher calls "proof that the bulls are still in control."
Dow Jones Industrial Average
rose 15.27 points, or 0.2%, to 9108.51, and the
added 2.92 points, or 0.3%, to 982.18. The
edged up 1.93 points, or 0.1%, to 1967.89.
Really it's just resiliency, says Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "The bottom line is that there are signs of life, and the market doesn't want to go down. Buying late in the day and closing near the high of the day is more proof that the bulls are in control."
A few disappointing earnings reports kept stocks lower most of the day despite a report by the Department of Commerce that there were 384,000 new-home sales in June,
an 11% increase
over the month prior and well over the 352,000 expected.
A successful Treasury auction of $6 billion of 20-year inflation protected securities, relieved some anxiety that's surrounded a record $211 billion of government debt that will be offered to the market this week. But stocks revisited negative territory before receiving a final lift of late-day buying.
Things didn't exactly start off on the right foot as
, down 1.6%, announced that second-quarter profit fell 21%, although that was slightly better than expected. The wireless carrier also said it will be cutting more than 8,000 employee and contractor jobs before the end of the year.
"The market has dropped the bar of expectations to the ground, and companies are stepping over it quite easily," says Alan Gayle, director of asset allocation at RidgeWorth Capital Management. "Unfortunately, one of the things that leads us to concern is that a lot of that earnings growth is coming through savings. What a lot of investors are looking for is signs that the top-line growth is turning around."
Click the button below to hear Alan Gayle, director of asset allocation at RidgeWorth Capital Management, break down the latest earnings trends and discuss what sectors he likes as earnings season winds down.
also met profit estimates but came in light on revenue, and the latter
of its previously forecast range. RadioShack was unchanged, while Honeywell shares advanced 0.7%.
Aetna became an anomaly in that it reported 11% growth in revenue, but that didn't translate to a better bottom line. The health insurer said
quarterly profit fell 28%
despite the increase in revenue and announced its cutting its full-year forecast due to higher medical expenses in its commercial business. Shares fell 2.7%.
Improved housing data and a slew of better-than-expected earnings reports helped support a 4% surge in the major indices last week and double-digit advances over the last two weeks.
Now Gayle believes the market is in a period of transition. We're seeing consolidation that's presenting a pause while Wall Street waits for earnings and the economy to show more signs of recovery.
"So I expect we'll see some continued volatility, especially given that we're in that part of the earnings season where some of the more vulnerable companies are expected to report over the next couple of weeks," he said.
In other news,
said about $20.3 billion of publicly held convertible and nonconvertible preferred and trust preferred securities were
in exchange for common stock. As a result of this and other previously announced exchanges with private debt holders and the government, about $58 billion of preferred and trust preferred securities will have been exchanged to common stock.
Stocks overseas were mixed. In Europe, London's FTSE 100 and the DAX in Frankfurt were up 0.2% and 0.4%, respectively. In Asia, the Nikkei in Japan rose 1.5%, and the Hang Seng in Hong Kong gained 1.4%.
Crude oil futures were recently up 33 cents to $68.38 a barrel, while gold shed $2.40 to $953.50.
Longer-dated Treasuries were falling in price, rising in yield. The 10-year was losing 16/32 to yield 3.72%, while the 30-year gave up 1-12/32, yielding 4.63%.
-- Reported by Elizabeth Trotta in New York