* Alcoa shares rise after positive outlook for the year
* Fourth-quarter earnings, revenues expected to grow 1.9
percent,
* Indexes up: Dow 0.4 pct, S&P 0.2 pct, Nasdaq 0.4 pct
NEW YORK, Jan 9 (Reuters) - U.S. stocks edged up on
Wednesday after Alcoa got the earnings season under way with
better-than-expected revenue and an encouraging outlook for the
year.
The market's rise came after two-days of declines, with few
catalysts to give direction and investors fretting about the
start of earnings season after the prior quarter's lackluster
performance.
Alcoa Inc said late on Tuesday it expects global
demand for aluminum to grow in 2013, though the company
expressed concern about the impact on business from a
confrontation in Washington over the U.S. budget. Shares of
Alcoa, the largest U.S. aluminum producer, were trading flat in
early afternoon at around $9.12, after earlier trading
higher.
Overall, corporate profits were expected to beat the
previous quarter's meager 0.1 percent rise. Both earnings and
revenues in the fourth quarter were expected to grow by 1.9
percent, according to Thomson Reuters data.
But the lowered expectations leave room for companies to
surprise investors even if their results are not particularly
strong, analysts said.
The current quarter was shaping up like the previous one,
with companies lowering expectations in recent weeks, said James
Dailey, portfolio manager of TEAM Asset Strategy Fund in
Harrisburg, Pennsylvania.
"So the big question and focus is on revenue, and Alcoa had
better-than-expected revenue," calming the market a little,
Dailey said.
The Dow Jones industrial average was up 56.44 points,
or 0.42 percent, at 13,385.29. The Standard & Poor's 500 Index
was up 3.31 points, or 0.23 percent, at 1,460.46. The
Nasdaq Composite Index was up 11.50 points, or 0.37
percent, at 3,103.31.
Shares of Herbalife Ltd rose 3.5 percent to $39.70,
following news that hedge fund manager Dan Loeb has taken a
stake of more than 8 percent in the nutritional supplements
seller, according to a regulatory filing. Herbalife has come
under fire from prominent short-seller Bill Ackman, who has
accused the company of being a "pyramid scheme," a charge it
vehemently denies.
Facebook Inc shares rose above $30 per share for the
first time since July, 2012. The social network sent out a media
invitation on Tuesday saying, "Come and see what we're
building." Facebook, which has been tight-lipped about its plans
after its botched IPO in May, invited the media to its Menlo
Park, California, campus on Jan. 15.
Among other companies reporting earnings, Constellation
Brands, whose labels include Robert Mondavi and
Ravenswood wines, reported higher profit and raised its
forecast. The stock was down 0.8 percent at $35.74.
Apollo Group Inc slid more than 11 percent after it
reported lower student sign-ups for the third straight quarter
and cut its operating profit outlook for 2013. Apollo's shares
were last at $18.63.