Intel expectations drive US stocks

The US stock markets,facing negative sentiments in recent days,is expecting tremendously good news from the chip-maker and this has led to indices powering up.

The Dow Jones industrial average extended its push past 11,000 Tuesday after expectations grew that stronger corporate earnings would signal that a recovery is on track.

Stocks fell in early trading after quarterly results from aluminum producer Alcoa Inc. missed expectations. Major indexes later poked higher as traders jockeyed for position ahead of earnings from leading chipmaker Intel Corp.,which reported strong results after the closing bell.

By the close,the Dow had tacked on about 13 points. The Dow on Monday finished above the psychological benchmark of 11,000 for the first time in a year and a half.

The results from Alcoa brought a disappointing start to the flow of earnings reports from the January-March quarter. But analysts said the company8217;s performance didn8217;t provide a good indication of how other companies would do.

Alcoa8217;s loss narrowed from a year earlier but its adjusted earnings and revenue came in below analysts8217; estimates. Alcoa was the first of the 30 Dow stocks to report results.

Upbeat economic news brought some support to the market. The Commerce Department said the U.S. trade deficit grew in February as imports rose. That8217;s a welcome sign for the economy because it means people are buying more goods.

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The stock market has been rising for 13 months on signs that the economy is improving. But some analysts are concerned that the rise has come too quickly.

Since major stock indexes hit 12-year lows last year,there have been five pullbacks of as much as 8 percent in the Standard amp; Poor8217;s 500 index. None have topped the 10 percent mark that would signify a correction.

There have been few drops in the past two months. Instead,stocks have been notching a string of gains.

8220;The market has ground higher steadily,8221; said Adrian Cronje,chief investment officer at the investment firm Balentine in Atlanta. 8220;It8217;s up a little bit every day,a little bit every day.

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And that tends to lull people into complacency.8221; According to preliminary calculations,the Dow rose 13.45,or 0.1 percent,to 11,019.42. The Samp;P 500 index rose 0.82,or 0.1 percent,to 1,197.30,while the Nasdaq composite index rose 8.12,or 0.3 percent,to 2,465.99.