Stocks post modest, but broad gains

There was no dramatic rally, and no records were set. But stocks finished Monday with small gains sprinkled across industries as the big indexes continued to trade near record highs.

The S&P 500 increased 6.29 points, or 0.4 percent, to close at 1,767.93. The Dow Jones industrial average rose 23.57 points, or 0.15 percent, to 15,639.12.

The Nasdaq composite gained 14.55 points, or 0.37 percent, to 3,936.59. And the Russell 2000 index of smaller companies rose more than 1 percent to 1,108.28, the biggest gain among U.S. market benchmarks.

Energy stocks had by far the biggest gains among the 10 industries in the S&P 500, followed by technology and consumer discretionary stocks. And some industries rose sharply, including steelmakers and home builders.

Though Monday's gains were modest, they continued a powerful rally in the market that has driven the S&P 500 index up nearly 24 percent this year.

Home builders gained after Tri Pointe Homes said it would combine with Weyerhaeuser's home-building business in a $2.7 billion deal. Last week, home builders fell after the Federal Reserve said in a policy statement that the recovery in that sector has "slowed somewhat" in recent months.

Tri Pointe rose 77 cents, or 5 percent, to $16.15. Toll Bros., D.R. Horton, and KB Home all posted gains.

Steelmakers rose after Goldman Sachs said the steel sector appears to be "heading to a sustainable recovery." AK Steel Holding rose 40 cents, or almost 9 percent, to $5. US Steel rose $1.13, or 4.4 percent, to $26.91. Steel Dynamics Inc. rose 41 cents, or 2.2 percent, to $18.85.

So far during the third-quarter earnings season, 68 percent of companies that have reported have beaten analysts' estimates, according to S&P Capital IQ. But 60 of the 78 companies that provided fourth-quarter forecasts came in lower than analysts were expecting.

"Generally earnings have been OK, but revenues have been a little bit light," said Lawrence Creatura, portfolio manager for the Clover Small Value Fund at Federated Investors.

"Management teams seem to be getting it done through cost-cutting rather than vibrant organic growth," Creatura said. "The economy is growing slowly, stubbornly slowly."

With just 14 companies reporting earnings Monday, some investors were on the sidelines. The pace picks up on Tuesday.

Food distributor Sysco rose Monday after its earnings beat analyst estimates. Its stock rose $1.40, or 4.3 percent, to $33.96.

The yield on the 10-year Treasury note fell to 2.60 percent, from 2.62 percent.