New York – Wall Street edged higher in an erratic session Monday as investors were reassured by a drop in Treasury-bond yields yet remained cautious as second-quarter earnings season kicks off this week.
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 aluminum producer Alcoa Inc. released results that matched analysts’ projections.
In the meantime, Wall Street found some solace as the yield on the benchmark 10-year Treasury note dipped to 5.16 percent from 5.18 percent Friday. There had been some concern that the steady rise in bond yields since June would crimp dealmaking.
Buyout activity continued Monday as Apollo Management LP’s Hexion Specialty Chemicals Inc. raised its takeover bid for chemical company Huntsman Corp.; Barron’s said FedEx Corp. might be the target of a buyout; and Coventry Health Care Inc. agreed to acquire Florida Health Plan Administrators LLC, owner of Vista Healthplans, for $685 million.
A continuum of takeovers has given the stock market support in recent months.
“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.”
The Dow Jones industrials rose 38.29, or 0.28 percent, to 13,649.97. The blue-chip index came within about seven points of its record close of 13,676.32 before falling back.
Broader market indexes were also higher. The Standard & Poor’s 500 index rose 1.41, or 0.09 percent, to 1,531.85, and the Nasdaq composite index added 3.51, or 0.13 percent, to 2,670.02.
Last week, Wall Street began the third quarter with positive data on the job market and the manufacturing and service sectors, and managed to finish Friday with a respectable gain. For the week, the Dow rose 1.51 percent, the S&P 500 1.80 percent and the Nasdaq 0.08 percent.
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 1.1 percent gain of April and about double what analysts had been expecting.
For May, consumers increased their borrowing by $12.9 billion to a record $2.44 trillion. Economists had been forecasting that consumer borrowing would rise by $6.5 billion.
