Dow up 18; investors await earnings news

NEW YORK - Stock indexes closed slightly higher Monday as investors grew more cautious while they waited for the start of second-quarter earnings reports. They got good news after trading ended, when Alcoa Inc. reported better-than-expected results.

The Dow Jones industrial average rose 18 points and the other big indexes also had slight gains. But almost two stocks fell for every one that rose on the New York Stock Exchange, a sign that investors were wary about earnings.

Alcoa didn't disappoint them. The aluminum maker beat analysts' expectations, and it also said it was raising its forecast for consumption of the metal this year. That was particularly heartening for investors who have worried that the global economy was slowing, or even headed for another recession. The company's stock rose about 3 percent in after-hours trading.

Investors made few big moves as they waited for Alcoa's earnings. So they showed little reaction to news of several corporate acquisitions.

Insurance broker Aon Corp. said it would buy human resources company Hewitt Associates for $4.9 billion in cash and stock, and Playboy Enterprises Inc. founder Hugh Hefner offered to take the media company private. Also, Avon Products Inc. agreed to buy Silpada Designs for $650 million in a bid to expand its jewelry business.

Investors generally see acquisitions as a sign that companies are confident and willing to spend cash to expand.

Earnings are likely to dominate trading for the next few weeks. Investors are seeking insight into the state of the economy not only from how well companies fared during the April-June period, but also from their forecasts for the coming quarters. In particular, investors want to see whether sluggish retail sales, waning consumer confidence and high unemployment have actually hurt corporate profits.

Tech stocks rose after analysts upgraded their ratings of Qualcomm Inc. and SanDisk Corp. The analysts forecast continuing growth in the smart-phone market.

The Dow Jones industrial average rose 18.24, or 0.2 percent, to 10,216.27. The Standard & Poor's 500 index rose 0.79, or 0.1 percent, to 1,078.75, while the Nasdaq composite index rose 1.91, or 0.1 percent, to 2,198.36.

Economic news this week should shed light about how well the recovery is going. In addition to earnings reports, readings are due on retail sales, weekly jobless claims, manufacturing activity, consumer sentiment, and inflation.

Alcoa rose to $11.24 in after-hours trading after falling 7 cents to $10.87 in regular trading.

Other materials stocks fell in regular trading. A drop in commodities imports in China, particularly copper, hurt shares of companies like Freeport McMoran Copper & Gold Inc. Its shares fell $2.76, or 4.2 percent, to $63.22.

Hewitt shares jumped $11.39, or 32.2 percent, to $46.79. Aon shares fell $2.72, or 7.1 percent, to $35.62. Playboy jumped $1.61, or 40.9 percent, to $5.55. Avon rose 15 cents to $28.42.

Qualcomm rose $1.19, or 3.5 percent, to $35.10. SanDisk rose $2.91, or 6.8 percent, to $45.81.