Dow, Nasdaq post gains in early trading on Monday

Stocks opened higher Monday after Citigroup Inc.'s financial results came in stronger than expected and the government reported an increase in March retail sales. Earnings reports begin arriving at a steady clip this week, giving investors fresh indications about the state of the economy. This week nearly half the 30 Dow Jones industrial average's component companies report results. While investors expect profit growth will slow, they are hoping consumer spending will remain robust. The Commerce Department's data Monday showed that consumers spent strongly last month, sending retail sales up by about 0.7 percent. The figure was close to what analysts predicted, and up from a revised 0.5 percent rise in February. Beyond earnings news, investors appeared pleased by the acquisition of SLM Corp., known as Sallie Mae. The student lender agreed Monday to be sold to two private investment funds and J.P . Morgan Chase & Co. and Bank of America Corp. for $25 billion, or $60 per share. In the first hour of trading, the Dow Jones industrial average rose 55.18, or 0.44 percent, to 12,667.31. Broader stock indicators also rose. The Standard & Poor's 500 index rose 8.44, or 0.58 percent, to 1,461.29, and the Nasdaq composite index 15.81, or 0.63 percent, to 2,507.75. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.74 percent from 4.77 percent late Friday. The dollar traded near all-time lows versus the euro, but strengthened against the yen after the Group of Seven decided Friday not to urge Japan to raise interest rates to boost its currency. Oil prices slipped Monday, with a barrel of light sweet crude falling 7 cents to $63.56 in premarket electronic trading on the New York Mercantile Exchange. Gold also rose. Profit news drew investors' attention Monday as they were eager to see how well profits would hold up. Wall Street anticipates the reports will indicate that corporate growth slowed in the first three months of 2007 compared with previous quarters. Standard & Poor's recent estimate of first-quarter earnings growth for S&P 500 companies is 3.8 percent. Citigroup, the largest U.S. financial institution, said its first-quarter profit fell by 11 percent, but the results included a charge to cover a massive restructuring. Excluding that charge, the profit was higher than analysts expected, thanks to an increase in revenue. Eli Lilly & Co.'s first-quarter profit fell 39 percent. After adjusting for certain items, the company's profit came in above expectations. The drug maker also reported a rise in revenue, and raised its full-year sales and earnings guidance. The Russell 2000 index of smaller companies rose 6.65, or 0.81 percent, to 826.02.