Stocks rose for the fourth session in a row on Tuesday as investors bet that companies will be able to surpass the low bar set for earnings season, leaving room for better-than-expected results that could drive the rally further. Since the bar is set so low for earnings, investors feel confident that companies will be able to pass expected earnings
Nine of the 10 S&P 500 industry sector indexes ended higher. Material and industrial shares recorded the biggest gains after Alcoa Inc (AA) affirmed its global demand forecast for aluminum products when it reported results after Monday’s closing bell.
Last month, Fed Chairman Ben Bernanke said the economy is expanding strongly enough for the central bank to start slowing the pace of its bond-buying stimulus later this year.The Fed will release the minutes from its June policy meeting on Wednesday. Investors will watch for clues into the timing of possible trimming of stimulus measures.