Stocks struggle higher in choppy trading; Dow up 75

NEW YORK - Investors are trying to get a read on the economy using earnings reports. It's not so easy.

The result Tuesday was yet another day of erratic stock trading. Analysts were hard-pressed to find a reason for the turnaround. But trading was extremely light, and that tends to skew stock prices.

Analysts said some investors were a little more upbeat as they awaited earnings reports from Yahoo Inc. and Apple Inc. after the close. But those reports came in mixed, just like those from other companies that have reported second-quarter results. Apple's stock surged in after-hours trading, but Yahoo fell. Like IBM Corp., Johnson & Johnson, and Goldman Sachs Inc., its revenue fell short of expectations.

Investors have focused on revenue rather than bottom-line earnings. If revenue is down because consumers aren't spending, that's a sign that the economy could remain weak.

The Dow rose 75.53, or 0.7 percent, to 10,229.96. The broader Standard & Poor's 500 index rose 12.23, or 1.1 percent, to 1,083.48. The Nasdaq composite index rose 24.26, or 1.1 percent, to 2,222.49.

Investors are also going to watch the next two days closely as Federal Reserve Chairman Ben Bernanke gives Congress his semiannual report on the economy.

A downbeat report on the housing sector didn't help the market's early bad mood. The Commerce Department said home construction fell last month to the lowest level since October. The drop was mitigated by a 2.1 percent rise in building-permit applications, an indicator of future activity.

Yahoo rose 10 cents in regular trading to $15.20, then dropped $1.10, or 7.2 percent, in after-hours trading. Apple rose $6.31 to $251.89 in regular trading, then surged another $7, or 2.8 percent, in extended trading.

Johnson & Johnson's revenues came in flat, and below what analysts were expecting. The company said several recalls of popular nonprescription medicines kept its top line in check. Shares of J&J, a Dow component, fell 99 cents, or 1.7 percent, to $58.58.

For some companies, even matching expectations for revenues isn't enough. Late Monday, Texas Instruments reported revenues that were in line with estimates, but investors were disappointed that the company didn't report results as robust as some of its competitors. TI's shares slumped 78 cents, or 3 percent, to $24.77.

IBM fell $3.24, or 2.5 percent, to $126.55.

Goldman Sachs' results are being closely watched because investors are concerned about how much banks will be restricted from trading by new financial regulation reform. The bank's net income after paying preferred stock dividends fell 83 percent to $453 million on lower trading revenue and a charge to settle civil fraud charges brought by the government. A federal judge on Tuesday approved that settlement.

Goldman rose $3.23, or 2.2 percent, to $148.91.