Stronger earnings reports push stocks higher

NEW YORK (AP) — New signs of surging corporate profits led to gains in the stock market today.

Alcoa Inc. kicked off the fourth quarter earnings season Monday when it reported that it beat Wall Street estimates. The aluminum maker also said it expects demand for its products to jump 12 percent this year, including gains of up to 11 percent in sales to automakers.

Two major retailers raised their earnings forecasts. Sears Holdings Corp. said expects to earn between $1.16 and $1.88 per share this year, well above the 88 cents analysts predicted. Tiffany & Co. said better-than-expected holiday sales would push its full-year earnings up at least six cents per share to $2.83.

The Dow Jones industrial average rose 63 points, or 0.5 percent, to 11,700 in morning trading. The Standard and Poor’s 500 index gained 7, or 0.6 percent, to 1,277. The Nasdaq composite rose 12, or 0.4 percent, to 2,719.

Gains were spread across the market. Telecommunications companies were the only one of the 10 company groups in the S&P index to fall. That group fell 1.6 percent.