Work Cited: The New York Times http://www.nytimes.com/2012/08/08/business/daily-stock-market-activity.html?hpw

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The recent rally on Wall Street continued on Tuesday, as the main focus once again returned to the health of American corporations.

The Dow Jones industrial average ended the day 0.4 percent higher, and the broader Standard & Poor’s 500-stock index rose 0.5 percent, to just above 1,400, a level it had not reached for three months. The Nasdaq composite was 0.9 percent higher.

All three major indexes have been buoyed in recent days partly by the surprisingly strong jobs report released last Friday, with the Nasdaq leading the way.

“There’s been a bunch of positive earnings numbers,” said Stephen Carl, the head of equity trading at The Williams Capital Group. “While that makes some investors happy, I’d like to see some more robust growth.”

CVS Caremark, the drugstore chain, reported an 18 percent rise in second-quarter net income as new business and an expansion of its pharmacy benefits management business increased revenue. The company’s adjusted earnings beat Wall Street expectations, but its shares were down 1.7 percent.

A big loss from MGM Resorts International during the quarter was overshadowed by a 29 percent surge in revenue and company shares jumped 7.5 percent.

As of Monday, 65 percent of the 407 companies in the S.&P. 500 that have reported earnings beat Wall Street expectations, according to S.&P. Capital IQ. More than 40 percent have shown double-digit growth, according to analysts with Capital IQ.

On Tuesday, the Federal Reserve said total borrowing increased 3 percent, to $2.58 trillion, in June from May.

But while borrowing increased over all, Americans cut back on credit card use in June, offering evidence that high unemployment and slow growth had made consumers more cautious about spending.