MARKET SNAPSHOT: U.S. Stock Market Tentatively Up Before Alcoa

By Kate Gibson

U.S. stocks on Monday clung to modest gains ahead of first-quarter earnings, which unofficially kick off after the close with results from aluminium giant Alcoa Inc.

Back above the 11,000 mark for the second time in as many days, the Dow Jones Industrial Average (DJI) was up 20.79 points at 11,018.14, with Alcoa (AA) and Caterpillar Inc. (CAT) pacing the gains, both up around 2%.

The first of the Dow's 30 components to report results, Alcoa is expected to swing to a profit amid higher aluminium prices and increased demand. .

Other big names this week on the earnings calendar include blue chips Intel Corp. (INTC), Bank of America Corp. (BAC) and General Electric Co. (GE),

"By the end of the week, we should have a reasonable idea of whether investors' high expectations for terrific earnings reflected in recent stock price gains over the last eight weeks have been warranted," said Fred Dickson, chief market strategist at Davidson Co.

The S&P 500 Index (SPX) rose 2.76 points to stand at 1,197.13, with energy rising the most and health care the greatest laggard among the index's 10 industry groups.

The Nasdaq Composite Index (RIXF) was up 2.9 points at 2,456.95.

Activity on the corporate M&A front also bolstered sentiment, with Mirant Corp. (MIR) agreeing to acquire rival power firm Reliant Energy Inc. (RRI) for $1.61 billion and with military contractor DynCorp International (DCP) getting taken out by private equity's Cerberus Capital Management.

Also coloring the action on Wall Street, European leaders during the weekend agreed to offer loans to Greece, helping ease worries that rising debt in Greece and other countries in Europe might curb the global economic recovery and weakening the euro.

Crude-oil futures topped $85 a barrel as gold edged up above $1,164.00 an ounce.

Advancers outran decliners by a more than 4-3 ratio on the New York Stock Exchange, where 370 million shares changed hands and composite topped 2.1 billion.

On Friday, U.S. stock benchmarks climbed to close out a sixth consecutive week of gains, taking the Dow industrials above 11,000 for the first time since late in September 2008. The Dow didn't, however, close above the psychologically significant level.