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Standard & Poor's 500 index crosses 1,400 as US companies turn in better earnings reports
NEW YORK (AP) ¯¯¯ Stocks are trading higher on Wall Street as investors turn their focus to U.S. corporations that are reporting better results than analysts had expected.
The Dow Jones industrial average rose 70 points to 13,187 in the first half-hour of trading on Tuesday.
The broader S&P 500 index rose 8 points to 1,402. It was the first time the index traded above 1,400 since May 3.
The Nasdaq composite index rose 18 points to 3,007.
Of the 407 companies in S&P 500 that reported earnings through Monday, 65 percent beat Wall Street expectations, according to S&P Capital IQ. More than 40 percent have reported double-digit growth.
On Tuesday, accessories maker Fossil's second-quarter net income climbed 12 percent thanks to growing demand in Asia and strong watch sales. The performance topped analysts' estimates, and the stock popped $20.17, or 29 percent, to $89.91, the biggest gain in the S&P 500 index.
MGM Resorts International reported a 29 percent surge in revenue even though the casino company had a quarterly loss. The stock rose 85 cents, or 9 percent, to $10.23.
Chesapeake Energy reported after the markets closed on Monday that its income nearly doubled in the second quarter. Revenue from oil, natural gas and natural gas liquids rose. Chesapeake's stock rose $1.32, or 7.5 percent, to $19.02.
Disney, Priceline and Express Scripts will all report earnings after the closing bell.
Also Tuesday, the Federal Reserve is expected to report that U.S. consumers likely took on more debt in June, even as they kept spending in check. More borrowing is generally viewed as a healthy sign for the economy. It suggests consumers are gaining confidence and growing more comfortable taking on debt.
In Europe, most markets were higher, despite news that Italy's recession deepened in the April through June period. Italy's economy shrank for the fourth quarter in a row.
Italy's government, which is trying to reduce debt, has made spending cuts and tax increases that are hurting businesses and households. Investors hope that the European Central Bank will help support Italy buying its government bonds, which will keep down the interest rates the country must pay to borrow money.