Alcoa Inc. will report fourth-quarter earnings after the market close on Jan. 9. Earnings for companies in the S&P 500 will climb 9.7 percent on average this year, almost twice the rate of 2013, while sales will probably increase 3.8 percent, according to analyst estimates compiled by Bloomberg.

Jobs data

The ADP Research Institute reports the change in companies' payrolls tomorrow and minutes from the Federal Reserve's December meeting will be released the same day. The Labor Department will provide the unemployment rate and new hiring figures for last month on Friday. The Fed, which has made job creation a condition for reducing asset purchases, said on Dec. 18 that it would slow the pace of bond buying.

Three rounds of stimulus have helped propel the S&P 500 higher by as much as 173 percent from a 12-year low in 2009. Janet Yellen won Senate confirmation with a 56-26 vote to become the 15th chairman of the Fed. She will replace Ben S. Bernanke, whose second term as chairman expires Jan. 31.

Data today showed the trade deficit in the U.S. shrank more than forecast in November as oil imports dropped to the lowest level in three years and exports climbed to a record. The gap narrowed 12.9 percent to $34.3 billion, smaller than projected by any economist surveyed by Bloomberg and the least since October 2009, figures from the Commerce Department showed today in Washington.

Earnings growth

"Sentiment is still very high," said Francois Savary, who oversees about $9.4 billion as chief investment officer at Reyl & Cie. in Geneva. "The key question now will be to see if earnings growth really does come through. When you have less liquidity in the system and good economic numbers to support the recovery, it's time for companies to deliver."

UnitedHealth climbed 2.5 percent to $76.09. The company was raised to buy from hold by analysts at Deutsche Bank AG. J&J, the world's biggest maker of health-care products, increased 1.6 percent to $93.81 as RBC Capital Markets boosted the stock to outperform from sector perform.

Convergys jumped 11 percent to $23.24. The acquisition of Stream will add 35 cents to the company's adjusted earnings-per- share in the first 12 months after completion, which Convergys projects will be in the first quarter of this year.

Casino stocks

MGM Resorts International, Wynn Resorts Ltd. and Las Vegas Sands Corp. advanced after Nomura analyst Harry Curtis increased his estimates for the companies' Macau earnings and raised his price targets for all three stocks.

MGM rose 3.9 percent to $24.39 and Wynn Resorts gained 2.5 percent to $200.77. Las Vegas Sands added 2.5 percent to $79.21.

Netflix dropped 4.2 percent to $344.42. Morgan Stanley cut its rating on the stock to underweight, similar to a sell recommendation, from equal weight, citing increased competition in U.S. digital-video streaming. The stock almost quadrupled last year.

Mattel Inc. retreated 1.5 percent to $45.93 as Goldman Sachs Group Inc. cut its rating on the stock to sell from neutral, saying the toymaker may miss analysts' projections for fourth-quarter sales and profit when it reports results on Jan. 31. The brokerage said 2014 revenue growth may stall.

PBF Energy Inc. declined 6.1 percent to $28.08. The oil refiner said funds affiliated with First Reserve Management LP and Blackstone Group LP will sell 15 million shares in PBF, according to a statement.

Accelerating earnings growth will pave the way for stocks to extend their bull market this year, according to Thomas J. Lee, JPMorgan Chase & Co.'s chief U.S. equity strategist. After climbing 6 percent this quarter, S&P 500 profit will rise 10 percent in the second quarter, 11 percent in the third and 14 percent in the fourth, according to the New York-based strategist's estimates.

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