US stocks set to close higher

U.S. stocks rose, giving the Standard & Poor’s 500 Index a third straight day of gains, as investors waited for Alcoa Inc. (AA) to kick off earnings season.

The S&P 500 (SPX) added 0.5% to 1,640.28, trimming an early gain of 0.8%. The Dow Jones Industrial Average rose 92.82 points, or 0.6%, to 15,228.66.

The S&P 500 (SPX) gained 1.6% last week, as better-than-estimated economic data tempered concern over a possible scaling back of Federal Reserve stimulus. Employers added more jobs than forecast in June, and other data during the week showed jobless claims decreased and manufacturing improved. While the index has fallen 1.7% since its May 21 record, the gauge is up 15% for 2013.

Investors will gain more insight into the central bank’s plans when the Federal Open Market Committee publishes minutes from its June meeting on July 10. Chairman Ben Bernanke also speaks that day. He said on June 19 the Fed may pare its asset-purchase program this year and end it in mid-2014 if growth meets policy makers’ estimates.

Earnings at companies listed on the S&P 500 rose 1.8% last quarter, down from a projection of 8.7% six months ago, according to more than 11,000 analyst estimates compiled by Bloomberg. Lower expectations helped about 73% of the companies in the benchmark measure exceed forecasts by an average of 5.1% for the first three months of the year

Eight of 10 industry groups in the S&P 500 advanced as utility companies and financial shares rose more than 1%.

Alcoa increased 1.2%, as the largest U.S. aluminum producer will report results after markets close today. 

Dell Inc. (DELL) rallied 3% after the biggest shareholder-advisory firm said investors should accept founder Michael Dell’s buyout offer. Priceline.com (PCLN) added 3.2% after Morgan Stanley raised its recommendation on the stock. Intel Corp. (INTC) slumped 4% amid an analyst downgrade.

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