Stocks end higher on earnings optimism

Specialists Michael O'Connor, Peter Giacchi, and Douglas Johnson,

Specialists Michael O'Connor, Peter Giacchi, and Douglas Johnson, and Thomas Facchine, left to right, confer at the post that handles Sprint on the floor of the New York Stock Exchange Monday. (July 8, 2013) Photo Credit: AP

advertisement | advertise on newsday

The stock market is getting its momentum back.

The major indexes rose for a fourth straight day Tuesday, and the biggest gains were in riskier small-company stocks and sectors that do best when the economy is growing.

advertisement | advertise on newsday

Traders have grown more confident after Friday's strong jobs reports and on expectations of record corporate earnings for the second quarter, which ended June 30. So far, the stock market is up nearly 3 percent in July following a 1.5 percent dip in June.

The Russell 2000, an index of small-company stocks, rose nearly 1 percent Tuesday. The Dow Jones transportation average, seen as a leading indicator for the broader economy, led all indexes with a 2.26 percent rise. The gains suggest investors are getting more confident about the economy's prospects.

The Russell 2000 rose 8.80 points to 1,018.05. It has gained 4.2 percent in July and is moving deeper into record territory. The index has risen 20 percent this year, more than its large-company counterparts, the Dow Jones industrial average and the Standard & Poor's 500 index.

The Dow rose 75.65 points to 15,300.34. The S&P 500 rose 0.72 percent to 1,652.32. The Nasdaq composite index rose 0.56 percent to 3,504.26.

-- AP

The latest LI business news in your inbox daily. Get the Biz Briefing newsletter!

Comments now uses Facebook for our comment boards. Please read our guidelines and connect your Facebook account to comment.

You also may be interested in: