After a big run-up in the market last week, stocks started this week up modestly as investors anticipated another round of earnings season reports. Alcoa Inc. (AA) kicked off the season by reporting a 3.9% drop in second quarter profit due to weakness in the U.S. housing and automobile markets. Boeing (BA) unveiled its 787 Dreamliner on Sunday and announced new orders for the plane bringing the company’s total to over $100 billion. For the day, the DJIA gained 0.28% and the NASDAQ gained 0.13%.

Investor concern regarding the subprime market weighed on stocks Tuesday. In economic news, wholesale inventories in May rose 0.5%, higher than the expected 0.4%. In corporate news, Pepsi Bottling (PBG) rose after the company’s second quarter earnings were higher than expected. For the day, the DJIA and NASDAQ lost 1.09% and 1.16% respectively.

With buying opportunities following Tuesday’s drop, the equity market finished higher on Wednesday. In corporate news, shares of SLM Corp (SLM) fell after the company said its previously agreed $25 billion takeover could get derailed due to legislative proposals. Liz Claiborne (LIZ) announced plans to sell 16 of its 36 brands and cut 800 jobs. Genentech Inc. (DNA) reported a 41% increase in second quarter profit on the strength of sales of its cancer drug Avastin and eye disease drug Lucentis. American Eagle Outfitters (AEO) said same store sales were better-than-expected in June. For the day, the Dow and NASDAQ rose 0.56% and 0.48% respectively.

Stocks rallied with the Dow setting another new record on Thursday. In economic news, initial jobless claims for the week ended July 7 slid to 308,000, below the expected 315,000. In corporate news, Wal-Mart (WMT) rose after the company said same-store sales were better than expected. Marriott (MAR) fell on lowered third quarter earnings guidance and Halliburton rose after announcing a $2 billion stock buyback. For the day, the DJIA gained 2.09% and the NASDAQ gained 1.88%.

For the second straight session, stocks finished in record territory. In economic news, the import price index for June rose 1.0%, above the expected 0.7%. In corporate news, General Electric (GE) rose after posting a 9.6% rise in quarter profit on good results in its commercial finance business and strong demand for products ranging from jet engines to gas turbines. Alcoa (AA) climbed a day after Rio Tinto (RTP) thwarted the company’s bid for Alcan (AL) on speculation that it too may become a takeover target. The DJIA was up 0.33% and the NASDAQ 0.20%.

Stocks finished higher for the week, leaving the Dow Jones Industrials and broader S&P 500 at record levels, despite lingering concerns about the subprime mortgage market and the health of the economy. Better-than-expected earnings announcements and retail figures provided strength. For the week: the DJIA, S&P 500, and NASDAQ gained 2.17%, 1.44%, and 1.52% respectively.