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Tuesday, 07/14/2015 11:37:32 AM

Tuesday, July 14, 2015 11:37:32 AM

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U.S. stocks rose slightly Tuesday, adding to a rally that propelled the S&P 500 to its biggest three-day advance of the year. The Dow Jones Industrial Average climbed 46 points, or 0.3%, to 18024. The S&P 500 edged up 7.5 points, or 0.4%, to 2107 and the Nasdaq Composite gained 29 points, or 0.6%, to 5101. After several weeks of news around the globe dominating trading in U.S. markets, corporate earnings started to play a slightly bigger role on Tuesday. Still, traders said stock-market moves will likely continue to be dictated by worries about the timing of a rate increase by the Federal Reserve and continued developments out of Greece and China. "While earnings will probably mean more now, I think the narrative will continue to be dominated by the Fed and the macro picture," said R.J. Grant, associate director of equity trading at KBW Inc. After years of stimulus efforts, the Fed is widely expected to begin to raise short-term rates later this year. On Tuesday, J.P. Morgan Chase & Co. said its second-quarter profit rose 5.2% as earnings and revenue beat expectations. Shares gained 0.9%, adding about four points to the Dow industrials index. Also reporting results Tuesday morning was Wells Fargo & Co., whose shares added 1% after the bank said its second-quarter profit slipped. Separately, shares of Johnson & Johnson slumped 0.7%, dragging down the Dow industrials index by four points, after the company reported continued competition and a slump in sales for its hepatitis C treatment in the second quarter. Its stock declined even as J&J nudged up its earnings guidance for the year. Earnings for S&P 500 companies are forecast to slip 4.5% in the second quarter, according to FactSet. That would mark the first fall since the third quarter of 2012. Analysts had similarly forecast a decline in first-quarter earnings amid lower oil prices and a strong dollar. In the end, profits rose by 0.8%. Stocks in the U.S. and Europe have rallied in recent sessions, fueled by optimism that a deal between Greece and its creditors could be reached. That deal was secured Monday and gives Greece a fighting chance of staying in the eurozone. Investors are waiting to see whether the Greek government will be able to pass the tough austerity measures necessary to receive the bailout. Greek Prime Minister Alexis Tsipras "has a very short window to implement some of the agreed-upon reforms," said Doug Cote, chief market strategist at Voya Investment Management. The quiet action in the U.S. and Europe is a reflection of the uncertainty about Greece's ability to pass the austerity measures, he said. Still, he ultimately expects the deal to work out. "The eurozone wants a deal to get done, and Greece needs a deal to get done," Mr. Cote said. European stocks rose slightly Tuesday. France's CAC-40 added 0.6% and Germany's DAX gained 0.3%. U.S. stocks rose Monday, marking the third session of gains for the S&P and Dow. The S&P 500 added 1.1% to 2099.60 and posted its largest three-day advance since Dec. 22. The Dow rallied 1.2% to 17977.68 for its biggest three-day gain since Feb. 5. With Monday's rally, the S&P is up 2% and the Dow is up 0.9% for the year. Despite much recent focus on overseas events, traders say they expect more attention to be paid to earnings growth in the coming weeks as companies report second-quarter results. Mr. Cote said he expects companies to surpass the low expectations set by analysts, much like in the first quarter, and with total S&P earnings growth of about 1%. "It's nothing to write home about, but certainly not negative," he said. That will help propel the S&P 500 to his target of 2200 by year-end. Retail sales unexpectedly fell 0.3% in June from the prior month, the Commerce Department said Tuesday. Figures for the prior two months were also revised down. Economists surveyed by The Wall Street Journal had expected a 0.2% increase in June. A nuclear agreement between Iran and six world powers weighed on oil prices. Crude-oil futures shed 0.1% to $52.17 a barrel. But a further drop in oil prices depends on how successfully Iran can boost production and sell the oil in a competitive landscape. In other markets, gold futures slipped 0.1% to $1154.50 an ounce. The yield on the 10-year Treasury note fell to 2.415% from 2.430% on Monday. Yields fall as prices rise. Write to Corrie Driebusch at corrie.driebusch@wsj.com and Saumya Vaishampayan at saumya.vaishampayan@wsj.com (END) Dow Jones Newswires July 14, 2015 11:29 ET (15:29 GMT) Copyright (c) 2015 Dow Jones & Company, Inc. 071415 15:29 -- GMT

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