S&P 500 closes seventh-straight month of gains

Associated Press

NEW YORK

U.S. stocks inched ahead Tuesday after the makers of Kellogg’s cereal and Oreo cookies joined the parade of companies reporting stronger-than-expected profits.

The Standard & Poor’s 500 index gained 2.43 points, or 0.1 percent, to 2,575.26, the latest tick higher in what’s been a remarkably smooth ride this year. The index closed out October with its seventh-straight month of gains, the longest such streak in more than four years.

Food companies helped lead the market higher after Kellogg and Mondelez International both reported stronger results for the latest quarter than analysts expected. Kellogg jumped $3.66, or 6.2 percent, to $62.53, and Mondelez rose $2.13, or 5.4 percent, to $41.43.

“It’s been a fantastic earnings season,” said JJ Kinahan, chief market strategist at TD Ameritrade. “People talk about taxes, low interest rates and all these other things, but what really drives the market is earnings.”

More than half the companies in the S&P 500 have reported their results for the July-through-September quarter, and most have topped Wall Street’s forecasts. Several big names are still on the docket for this week, with Facebook set to report today and Apple on Thursday.

Rockwell Automation surged to the biggest gain in the S&P 500 after it received a buyout bid worth $215 per share in cash and stock. The company said it rejected the unsolicited bid from Emerson Electric on Oct. 10. Rockwell Automation jumped $13.82, or 7.4 percent, to $200.82.

On the losing end was Under Armour, which recorded the largest loss in the S&P 500 after it said demand for its sporting gear in North America weakened last quarter and cut its forecast for earnings this year. Its Class A shares fell $3.89, or 23.7 percent, to $12.52.