Surging energy shares driven by higher oil prices drove stocks higher on Tuesday, as earnings season got underway. Bobbi Rebell reports.
Surging oil prices lifted commodity stocks and Wall Street. Investors brushed aside downbeat economic and earnings news. The International Monetary Fund cut its forecast for global growth for the fourth time this past year, including its estimate for U.S. growth. And import prices rose less than expected in March. Alcoa shares fell the day after the aluminum producer kicked off earnings season. Low commodity prices and a strong dollar pummeled its quarterly profit. Mizuho economist Stephen Ricchiuto is wary of the first quarter report cards to come: SOUNDBITE: STEPHEN RICCHIUTO, CHIEF U.S. ECONOMIST, MIZUHO SECURITIES USA, (ENGLISH) SAYING: "I think, Q1 corporate earnings are going to be very disappointing. The question is, will corporations take on board a weaker currency and have more positive expectations for Q2?" Starbucks losing ground. Deutsche Bank downgraded the coffee chain's shares to "hold" from "buy" and cut its price target, citing slowing sales and earnings trends. Wal-Mart said it's teaming up with software company ChannelAdvisor so it can boost the number of products for sale on its website. The retailer's shares rose. Marathon Oil one of the top S&P 500 gainers a day after it signed deals to sell nearly a billion dollars' worth of non-core assets. In Europe, mining shares lifted the major indices.