Stocks surge ahead profits

 Stocks are extending recent gains at the start of a busy week of earnings, nudging the Dow Jones industrial average closer to 10,000.

Major market indicators rose moderately early Monday, including the Dow, which rose as much as 67 points to hit a 2009 high of 9,932. That's just 68 points shy of 10,000, a level not seen in a year.

Stocks got an early boost from a better-than-expected profit report from Dutch company Royal Philips Electronics. A weaker dollar drove oil and other commodities higher, giving energy, material and industrial stocks a lift.

Trading on Monday is expected to be fairly light as much of the country observes the Columbus Day holiday. No major economic reports are scheduled and government bond markets are closed.

The dollar mostly fell against other major currencies, helping to drive commodity prices higher. A weak dollar makes commodities more attractive to foreign investors. Gold was up about $6 at $1,054 an ounce, while oil prices added $1.79 to $73.56 a barrel on the New York Mercantile Exchange.

The dollar has fallen steadily over the past few months, as investors, more upbeat on the economy, take money out of traditional safe-haven assets and put it to work in stocks. The ICE Futures U.S. dollar index, which tracks the dollar against other major currencies, is down 14% since early March. The S&P 500 index is up 58.4% since then.

Better-than-expected first-quarter results from banks set off the stock market's rally seven months ago, and even stronger second-quarter results helped fortify the rally in July.

Analysts say companies' earnings reports will determine where the market heads next. If results exceed expectations and show companies are making money through sales and not just cost cutting, stocks could continue their push higher.

"There's still room here for equities to move up on the back of better-than-expected results," said Craig Peckham, an analyst at Jefferies & Co. "I don't think that positive surprises are fully priced in."

But disappointing earnings could easily upset investors who are looking for reassurance that the economy is growing and lead them to sell stocks.

In afternoon trading, Britain's FTSE 100 rose 1.3%, Germany's DAX index jumped 1.5%, and France's CAC-40 was up 1.3%. Earlier Monday, Hong Kong's Hang Seng finished down 0.9%. Japan's market was closed for a holiday.

Source: USAToday