The Dow cracked above the 9,000 level last week for the first time since January, propelled by better-than-expected earnings and positive trending economic data. The rally was broad for the second straight week as the three major indices managed stunning gains. The Nasdaq finally snapped an impressive 12-day winning streak on Friday. The tech heavy index remains up 55% since the March 9 low. For the week ended July 24:

Dow: Up 4% to 9,093.24
S&P: Up 4% to 979.26
Nasdaq: Up 4.2% to 1,965.96

It was another extraordinarily busy week as companies continued to report second-quarter earnings. Though earnings have been stronger than expected, profits have been based on cost cutting, not revenue growth, and companies are cautioning that the economy remains in a weak state. Compared with a year ago, most earnings were bleak. According to Standard and Poor's, operating income for companies in the S&P that have reported so far were nearly 29% less than last year, and 80% less than in 2007. How much further can companies polish earnings through cost cuts?

Earnings central
There was not much top-line growth to be found amongst the companies that reported this week, with the exception of Apple (Nasdaq: AAPL), which saw its net income jump 15% on a 12% increase in revenues, as demand for the company's iPhone outstripped supply.

Caterpillar (NYSE: CAT) reported a whopping 66% plunge in second-quarter earnings. The world's largest construction and mining equipment company raised its full-year earnings forecast on cost cutting, while lowering its revenue guidance. The key here is that revenues aren't there yet, and CAT doesn't expect demand to resurface before year end.

Ford posted a surprise profit in the second quarter, though only on a gain from debt restructuring.

Food and beverage
McDonald's (NYSE: MCD) earnings slipped 8% as the once recession-immune company felt the costs of more people eating meals at home. Revenue fell 7%, though on a constant currency basis, revenues increased 4%. June same-store sales were worse than anticipated, though still up 2.6%.

Coke (NYSE: KO) clocked better-than-expected second-quarter earnings as demand from China and India buoyed results. The cola king derives 80% of its sales from outside of North America, so the stronger dollar led to a 9% revenue decline.

Tech beat
Microsoft (Nasdaq: MSFT) posted its first full-year revenue decline (3%) since the company went public. Earnings declined 29% as demand for PCs waned. Though the company says it's still a tough economic environment, management said that the PC and computer server markets could see growth in 2010.

Amazon (Nasdaq: AMZN) saw revenues increase 14%, but earnings declined on selling lower-margin items and a legal settlement with Toys "R" Us. Also last week, the company announced a deal to acquire online shoe retailer Zappos. Continued...