Jan. 9 (Bloomberg) -- U.S. stocks rose, extending last week’s rally, as European leaders discussed plans to shore up the region’s currency and investors awaited the start of the fourth-quarter earnings season.
Alcoa Inc. climbed 2.7 percent before it becomes the first company in the Dow Jones Industrial Average to report quarterly results after the market closes. Broadcom Corp. rallied 2.9 percent after Deutsche Bank AG said soft fourth-quarter results for chipmakers will create a buying opportunity for the shares. Costco Wholesale Corp. lost 2.2 percent after Sanford C. Bernstein & Co. cut its rating for the warehouse-club chain.
The Standard & Poor’s 500 Index gained 0.2 percent to 1,280.25 at 10:24 a.m. New York time, after rallying 1.6 percent last week. The Dow advanced 26.07 points, or 0.2 percent, to 12,385.99, led by Alcoa.
“Europe is going to remain front and center,” said Kevin Caron, a market strategist in Florham Park, New Jersey, at Stifel Nicolaus & Co., which has more than $107 billion in client assets. “Investors have backed away from the level of anxiety that was typical a few months ago on the notion that temporary liquidity measures will be sufficient to carry the water until a more permanent solution is reached. Still, there are many questions about the structure of Europe.”
U.S. stocks rose last week, sending the S&P 500 to its second-best start of a year since 2006, as reports on manufacturing from America to China bolstered optimism about the economy. Equities fell on the last day of the week after growth in U.S. jobs failed to lift the S&P 500 above its October high.
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