NEW YORK (Reuters) - U.S. stocks closed higher on Thursday, with energy shares leading the advance as crude oil rebounded off a sharp decline, while investors bet that companies would top lowered expectations this earnings season.
The day's gains were broad, with eight of the S&P 500's ten industry sectors up on the day. The market extended its gains in afternoon trading, putting the S&P 500 about 1.3 percent away from its record close.Equities have struggled for direction of late, with investors seeing limited upside potential in equities, but also few alternatives for yield. Many investors are looking ahead to the first-quarter earnings season for market guidance.Earnings for S&P 500 companies are seen falling 2.8 percent in the first quarter, according to Thomson Reuters data, compared with the rise of 5.3 percent that had been forecast on Jan. 1. The drop in profits, especially for companies with multi-national exposure, is partially attributable to strength in the U.S. dollar. However, analysts said the currency impact would not necessarily be a long-term detriment to stock prices."To the extent the dollar means companies are losing business, it's a problem, but if earnings are just being translated into a stronger dollar, that's less of a problem," said Jim McDonald, chief investment strategist at Northern Trust Asset Management in Chicago. "An earnings recession is only a real problem for stocks if it is accompanied by an economic recession, which isn't the case here. We're positioned for an upside move as expectations have been lowered to the point where we're set up for a positive surprise."Among early reporters, Alcoa Inc