Dow above 10,000 on surprise results
THE Dow industrials pierced the 10,000 level yesterday for the first time in a year on surprisingly robust company results and better-than-expected retail sales.
With major indexes up more than 1 per cent, the Dow’s milestone shows how far the market has come since last year when investors fled collapsing financial markets as the economic outlook soured. Analysts said the more than 50 per cent rise off the 12-year lows hit in March could encourage more investors to buy stocks .
“Dow 10,000 may be largely psychological, but with tremendous levels of cash on the sidelines this may still be a call to action for investors,” said Lawrence Glazer, managing partner at Mayflower Advisors.
The Dow Jones industrial average rose 144.80 points, or 1.47 per cent, to 10,015.86. The Standard & Poor’s 500 Index gained 18.83 points, or 1.75 per cent, to 1,092.02. The Nasdaq Composite Index put on 32.34 points, or 1.51 per cent, to 2,172.23.
Strong results from JPMorgan Chase and Intel also bolstered analysts’ optimism over the earnings season that is picking up pace.
A fresh 14-month low for the dollar also helped stocks as investors bet the slumping currency will lift profits of large multinational companies with big overseas sales.
JPMorgan Chase’s quarterly profit rose sharply, bolstering hopes other major Wall Street banks will report strong results this week. Its stock jumped 3.3 per cent to $47.16 and the S&P financial index gained 3.4 per cent.
Chip maker Intel gained 1.7 per cent to $20.83 a day after reporting a quarterly outlook and results that soared past expectations. Analysts have said signs of improving revenue will be key to the current season.
A government report showed US retail sales, excluding auto purchases, rose for a second month. The data offered cautious optimism that spending could help support the economy as it struggles out of recession. The S&P retail index rose 1.7 per cent.
The Dow was last at 10,000 in October 2008 when it dropped through that barrier in a selloff on increasing fears about the financial crisis.