Wall Street edges higher as earnings season picks up pace

US stocks edged higher and stayed near record levels in early afternoon trading on Monday, with investors waiting for big US companies to report their quarterly earnings. Analysts are estimating an 8.2 per cent rise in second-quarter earnings for the S&P 500 companies from a year earlier.This follows a robust first quarter when US companies posted their best earnings since 2011, according to Thomson Reuters data. Earnings will be closely watched to see if high valuations are justified in the face of tepid inflation and a recent patch of mixed economic data. The S&P 500 has been trading at about 18 times earnings estimates for the next 12 months, compared with the long-term average of 15 times. Financial Astrology Tips

"After new highs that we saw last week, the market deserves a rest as investors await big earnings this week," said Dave Donabedian, chief investment officer of CIBC Atlantic Trust Private Wealth Management. "Our view is that right now the equity market is a one-legged stool that's driven by earnings and we're pretty optimistic about earnings but if that should falter, the market will falter." At 12:38 PM ET (1638 GMT), the Dow Jones Industrial Average was up 14.93 points, or 0.07 per cent, at 21,652.67, the S&P 500 was up 2.42 points, or 0.09 per cent, at 2,461.69. Astrology and Numerology Trading Tips