Upbeat Earnings Reports Lift US Stocks

Consumer spending fell for a second straight month in June, as Americans held back - due to high ____1____ (失业) and continuing weakness in the U.S. housing market.

But ____2____ (投资人) had other things to cheer about.

The Dow Jones Industrial Average has enjoyed its longest winning streak(一段时间) since April following ____3____ (强壮的) earnings reports this week by aluminum(铝) maker Alcoa and railroad ____4____ (巨头) CSX.

On Wednesday, the technology sector led the way after computer chip(集成电路片) maker Intel reported $10.8 billion in ____5____ (收益) - its biggest quarterly income(季收入) in more than a decade.

Intel's Chief Financial Officer Stacy Smith:

"What we are starting to see now is that companies are investing in technology, putting it in the hands of their employees because it makes those employees more ____6____ (富有成效的) and it reduces costs for the company, I think that is really what's driving the market right now."

Intel's record profit is helping to ____7____ (驱逐) fears that the U.S. economy is headed towards a double dip recession(二次萧条).

Fighting its worst approval ratings since taking office, the Obama administration argued the economic recovery remains on track.

Vice President Joe Biden said the government's $800-billion stimulus has already saved or created about three million jobs.

"We are releasing a report today [July 14] that says the GDP is between 2.7 and 3.2 percent higher because of one thing - the Recovery Act. Put it another way, we would barely be growing at all were it not passed in the first place."

Despite an initial growth spurt from the stimulus, ____8____ (分析家) say the U.S. economy is likely to grow more slowly in the second half of the year - not enough to reduce unemployment - now hovering near 10 percent.

But ABC News business analyst Mellody Hobson says better than expected profits this week will have a ____9____ (促进作用) on the U.S. economy.

"They're either going to have to give it to shareholders in the form of dividends(红利), hire more people, invest or spend, or buy companies. All of that bodes(预示) well. They can't hold the cash forever."

Despite encouraging earnings reports, U.S. stock prices edged lower late Wednesday after the Federal Reserve trimmed its growth forecast(预言) for the U.S. economy - citing weaker than expected consumer spending.

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