US markets on a high

The US stock market stepped to new highs for the year Monday after a handful of earnings reports bolstered hopes that the economy is coming back sooner than many analysts had thought.

That is helping some investors move past a bout of nerves about whether expectations for the economy are stretched too far. The Dow Jones industrial average rose 96 points, while the Standard & Poor's 500 index rose but ended just shy of 1,100, having topped that level during the day.

Industrial equipment maker Eaton Corp. said it was seeing improvement in key markets and raised its full-year profit forecast. Newspaper publisher Gannett Co. managed to post a profit
despite a sharp fall in revenue, and toy maker Hasbro Inc.'s income rose on cost cuts.

A drop in the dollar also helped push commodity prices higher, which in turn, helped stocks of materials and energy companies.

Investors are relieved to see better results in a broad range of industries following some downbeat news last week from major banks, which reported rising loan delinquencies as consumers and businesses struggle with paying debts.

The Dow rose 96.28, or 1 percent, to 10,092.19. The broader S&P 500 index rose 10.23, or 0.9 percent, to 1,097.91. For both indexes, it was the highest close since Oct. 3 last year.

The Nasdaq composite index rose 19.52, or 0.9 percent, to 2,176.32. Bond prices were mixed. The yield on the benchmark 10-year Treasury note fell to 3.38 percent from 3.42 percent late Friday.