US stocks rise on earnings optimism

Written By Unknown on Selasa, 09 Juli 2013 | 23.32

US stocks have opened higher on optimism about corporate earnings, even as the International Monetary Fund slashed its global economic growth forecast.

Five minutes into trade, the Dow Jones Industrial Average rose 69.40 (0.46 per cent) to 15,294.09.

The broad-based S&P 500 added 8.91 (0.54 per cent) to 1,649.37, while the tech-rich Nasdaq Composite Index put on 11.16 (0.32 per cent) to 3,495.99.

Markets were cheered by an earnings report from aluminum producer Alcoa that said profits came in 1 cent per share above expectations at 7 cents per share. Alcoa also reaffirmed its projection that global aluminum demand would grow by 7 per cent in 2013.

The gains came despite the latest economic forecast from the IMF, which trimmed world economic growth expectations for 2013 to 3.1 per cent from the April forecast of 3.3 per cent.

China and other emerging economic powers now face new risks, the IMF warned, "including the possibility of a longer growth slowdown."


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