Corporate Earnings Nudge Dow Up 6.75 : Market Overview : <i> Highlights of Monday’s market activities, as compiled from Times staff and wire reports: : </i>

* The stock market was broadly higher in light trading after several corporations posted higher second-quarter earnings, but investors were cautious ahead of key economic data. The Dow Jones average of 30 industrials rose 6.75 points to 3,337.31.

* Treasury bond prices fell on concern that Germany’s interest rates may rise, which could make U.S. investments less attractive.

* The dollar fell against major foreign currencies in light trading, with many participants waiting for important economic reports later in the week.

Stocks

Advancing issues outnumbered declines by about 4 to 3 on the New York Stock Exchange.

Volume on the floor of the Big Board came to about 148.88 million shares, down from 164.77 million in the previous session.

With little news or other incentives to push stocks higher Monday, investors looked to earnings for guidance. In recent weeks many companies have offered estimates of earnings for the three months ended in late June, but Monday marked the start of the quarterly reporting season.

Among companies reporting solid profits were Aluminum Co. of America, whose shares rose 1/2 to 73 1/2, and Temple-Inland, whose stock jumped 3/4 to 47 3/8.

Investors were cautious ahead of today’s economic reports, some traders said. The government will post readings on retail sales and consumer prices, while car manufacturers will disclose early July sales.

Among the trading highlights:

* Among actively traded NYSE issues, Glaxo was down 5/8 to 26 1/8, Telefonos de Mexico was up 7/8 to 46 5/8, and Citicorp was down 3/8 to 20 3/4.

* Blue chips were mixed. International Business Machines was up 1/4 to 97 7/8 after the company entered an alliance with Siemens and Toshiba Corp. to jointly develop advanced semiconductor products. Coca-Cola fell 1/2 to 42 1/8, and General Electric rose 3/8 to 76 3/4.

* Shares of several banks closed lower, even though prices advanced in early trading on upbeat news of second-quarter profits. J.P. Morgan lost 1/8 to 61 1/2, Chase Manhattan fell 1 1/4 to 27 7/8, and First Chicago slid 5/8 to 35 7/8.

In overseas trading, London stocks closed lower, with the Financial Times 100-share index down 12.5 points to 2,478.3. In Frankfurt, the 30-share DAX index dropped 17.98 points to 1,736.50, its lowest close since May 15. In Tokyo, the 225-share Nikkei average ended above 17,000 for the first time since June 12, rising 418.01 points, or 2.49%, to 17,201.73.

Credit

The price of the Treasury’s main 30-year bond dropped 9/16 point, or about $5.63 per $1,000 in face amount. Its yield, which moves in the opposite direction from price, rose to 7.68% from 7.63% late Friday.

Most of the decline in Treasury securities prices occurred in Europe before the start of U.S. trading. The drop came as concern grew that Germany’s central bank will raise rates at a meeting scheduled for Thursday.

The federal funds rate, the interest on overnight loans between banks, was quoted at 3.25%, up from 3.00% late Friday.

Currency

With little fresh economic news in the session, the dollar continued to sink on market expectations that Germany’s Bundesbank may soon increase interest rates, said Robert Ryan, senior trader at the Bank of New York.

In late European trading, the dollar was quoted at 1.4780 German marks, down from 1.4975; in late New York trading, the dollar was quoted at 1.4755 marks, down from 1.4940 marks late Friday. The dollar fetched 124.85 yen in New York, down from 125.25 yen late Friday.

Commodities

Corn futures prices sagged and wheat futures rallied Monday on the Chicago Board of Trade in response to rain in the Midwest that is helping the corn crop but slowing the winter wheat harvest.

On other commodity markets, platinum futures rose but gold and silver were mixed; most energy futures gained, and livestock and meat futures were mostly lower.

August gold climbed 80 cents to $349.80 an ounce; July silver slipped 0.1 cent to $3.919 an ounce.

Light, sweet crude oil for August delivery rose 8 cents to $21.36 a barrel.