NEW YORK: U.S. stocks mostly remained higher Monday on expectations of solid quarterly results, which helped to contain investor fears on the condition of the economy. However, technology stocks fell after Merrill Lynch brought down its rating on the sector.The Nasdaq composite index declined, but the Dow Jones industrial average and the Standard & Poor’s 500-stock index rose. A number of multibillion-dollar acquisitions also gave a boost to the market. Among the major deals were Kraft Foods Inc. agreeing to buy the Spanish and Portuguese units of United Biscuits for $1.07 billion and Kimco Realty Corp. acquiring Pan Pacific Retail Properties Inc. for $2.9 billion.

Analysts said predictions of strong second quarter earnings should give a thrust to the market after several weeks of confusion and uncertainty over interest rates and the weakness of the economy. The upbeat sentiments were helped by lower oil prices.

In midday trading, the Dow climbed 56.03, or 0.51 per cent, to 11,146.70, after adding some 84 points earlier. The Standard & Poor’s 500 index was up 4.72, or 0.37 per cent, at 1,270.20, while the Nasdaq slipped 1.77, or 0.08 per cent, to 2,128.29.

Elsewhere, Japan’s Nikkei rose 1.6 per cent, Britain’s FTSE 100 0.14 per cent, Germany’s DAX index added 0.43 per cent and France’s CAC-40 gained 0.58 per cent.

In the bonds sector, the yield on the 10-year Treasury note edged up to 5.15 per cent from 5.13 per cent Friday.

Aluminum maker Alcoa, the first to come out with quarterly results, said the earnings rose in line with market expectations. However, its revenue was below analysts’ average estimate. The company’s shares fell more than 4 per cent, or $1.47, in after-hours trade after closing at $33.41, down 14 cents. Other companies planning to announce the results are General Electric and PepsiCo.

Shares of EMC fell 6.9 per cent, or 77 cents, to $10.41, after it said its quarterly earnings and revenue would fall short of expectations. Hewlett-Packard’s declined 92 cents, or 2.8 per cent, to $31.93.