S&P and Nasdaq at highest in 3 months

Trader Frank Cannarozzo has reason to smile again, as he... — Trader Frank Cannarozzo has reason to smile again, as he did this past Friday. The Standard & Poor's 500 index and the Nasdaq on Tuesday both closed at their highest levels in three months. (Aug. 3, 2012) Credit: AP

By THE ASSOCIATED PRESSAugust 7, 2012

It was a day of milestones for the stock market.

Stronger corporate earnings reports and expectations that central banks will act to support the economy powered the Standard & Poor's 500 index past 1,400 for the first time in three months.

The S&P rose 0.51 percent to close at 1,401.35 Tuesday. Energy stocks increased the most of the 10 industry groups tracked by the index.

The Nasdaq composite index marked a milestone of its own: the first close above 3,000 since early May. The Nasdaq rose 0.87 percent to 3,015.86.

The S&P hadn't closed above 1,400 since May 2, and the Nasdaq hadn't closed above 3,000 since May 3.

"There's been a bunch of positive earnings numbers," said Stephen Carl, head of equity trading at The Williams Capital Group. "While that makes some investors happy, I'd like to see some more robust growth."

The Dow Jones industrial average rose 51.09 points to 13,168.60. The Dow is now 996 points below its all-time high of 14,164.53 reached on Oct. 9, 2007, before the financial crisis.

Energy companies rose broadly after Chesapeake Energy reported that its income doubled in the second quarter.

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