STOCKS rallied for a sixth straight day yesterday after Alcoa’s quarterly results heartened investors that had fled to the sidelines on jitters about the sustainability of the economic recovery.
The Dow Jones industrial average gained 146.75 points, or 1.44 per cent, to 10,363.02. The Standard & Poor’s 500 Index rose 16.59 points, or 1.54 per cent, to 1,095.34. The Nasdaq Composite Index jumped 43.67 points, or 1.99 per cent, to 2,242.03.
Markets look set to get another earnings-driven boost today after Intel reported results that beat expectations after the market closed. The chipmaker also gave a stronger-than-expected sales forecast.
Intel jumped more than five per cent to $22.16 in extended trade.
Alcoa, the largest US aluminum producer and seen as a bellwether for the economy, rose 1.2 per cent to $11.00 after it reported stronger-than-expected results.
The earnings optimism yesterday also boosted shares of other companies that will report earnings later this week, including major banks. JPMorgan Chase & Co gained 3.3 per cent to $40.48, while Bank of America rose 3 per cent to $15.67.00
Meanwhile Senate Democrats appeared to nail down the votes needed to pass a rewrite of financial regulation. If the bill is passed, it could be a short term negative for the banking sector.