NEW YORK - Investors are still building on a stock-market rally even when the news isn't all great.
Stocks edged higher yesterday after zigzagging in subdued trading on mixed economic and corporate earnings reports.
The Dow Jones industrial average rose only 15 points. But modest moves in the market's indicators belie larger forces at work: Investors aren't dumping stocks, even in the face of downbeat news.
Disappointing earnings from Verizon Communications Inc., Aetna Inc., and Corning Inc. kept the market's gains in check, adding another pause to a powerful rally that has sent major indexes 11 percent higher in two weeks.
RadioShack Corp. reported higher second-quarter earnings that beat forecasts, but mainly from cost-cutting - a familiar theme this earnings season that has disappointed many investors.
On the plus side, a government report showed new-home sales posted the fastest increase in June in more than eight years as buyers jumped on reduced prices, low interest rates, and a federal tax credit for first-time homeowners. That sent stocks of home builders surging.
The Dow rose 15.27, or 0.2 percent, to 9,108.51, its first finish above the 9,100 mark since Nov. 5.
The broader Standard & Poor's 500 index rose 2.92, or 0.3 percent, to 982.18, while the Nasdaq composite index rose 1.93, or 0.1 percent, to 1,967.89.
The Commerce Department said new-home sales rose 11 percent in June to 384,000, beating analysts' estimates. The median price of $206,200 was down 12 percent from a year earlier and off nearly 6 percent from May. Last week, stocks got a lift from a better-than-expected rise in sales of older homes.
Verizon's second-quarter earnings fell 21 percent. Cost reductions at the nation's largest wireless carrier failed to keep pace with falling revenue. Shares closed down 50 cents, or 1.6 percent, at $31.
Aetna's profit skidded 28 percent on higher medical expenses in its commercial business, and the health insurer cut its profit forecast for the second time in two months. The stock fell 72 cents, or 2.7 percent, to $25.72.
Corning said its second-quarter earnings tumbled from results inflated by a big one-time gain a year ago. The stock fell 50 cents, or 2.9 percent, to $16.50.
RadioShack fell $1.06, or 6.6 percent, to $15 after cost-cutting drove profit growth and sales fell short of analysts' expectations.
Among home builders, Lennar Corp. rose 76 cents, or 6.8 percent, to $11.87 and Beazer Homes USA Inc. jumped 36 cents, or 13.9 percent, to $2.95.
The dollar was mixed against other major currencies, while gold prices rose.
Crude oil rose 33 cents to settle at $68.38 a barrel on the New York Mercantile Exchange.
The Russell 2000 index of smaller companies rose 2.42, or 0.4 percent, to 550.88.
