By Rick Glaze

Major stock indexes closed a little higher last week after terrorist attacks in London and Alan Greenspan’s testimony in Congress.

The S&P 500 advanced 0.5 percent, and the Dow Jones Industrial Average edged higher by 0.1 percent.

The small company index, S&P 600, gained 2 percent for the week, its fourth straight up week. It is now ahead by 7 percent for the year.

A barrel of crude closed Friday at $58.65, well below the yearly high. The Nasdaq rose 1 percent for the week and broke into positive territory for the year, up 0.2 percent.

Leading groups are technology, energy, home builders, retailers and medical companies.

Semiconductor stocks rose 2.5 percent for the week, and the index reached a 52-week high.

Second quarter earnings reports have been strong and are reflecting a broad-based economic growth pattern.

On average, companies reporting earnings historically beat the analyst’s expectations about 59 percent of the time.

This quarter, so far, 72 percent have beaten the forecasts. Overall profits should come in around 10 percent higher than last year.

Energy companies have fueled much of the profit gains for the S&P 500. Excluding that group, the index’s profits will grow about 7 percent this quarter.

The financial sector accounts for one quarter of the S&P 500, but its profit picture has been disappointing, tracking at near 1 percent.

The U.S dollar was strong last week against the Japanese and European currencies, as the Chinese revalued the yuan slightly, leading to a flurry of speculation in the financial markets.

Rick Glaze, the president of Glaze Capital Management of Los Altos, is a registered representative of and offers securities through First Allied Securities Inc.