I must admit I wasn’t expecting this so soon, but it does have a nice ring to it.
Thanks to upbeat earnings the Dow has finally closed above the 10,000 mark.
From Bloomberg by Sapna Maheshwari entitled: U.S. Stocks Rally as Dow Hits 10,000 for First Time in Year
“U.S. stocks rallied, sending the Dow Jones Industrial Average above 10,000 for the first time in a year, on better-than-estimated earnings at JPMorgan Chase & Co. and Intel Corp. Oil climbed, while the Dollar Index slid to the lowest level since August 2008 and Treasuries fell.
JPMorgan added 3.3 percent as a surge in fixed-income revenue helped the bank increase profit almost sevenfold. Intel, the world’s largest chipmaker, rose 1.7 percent after its sales forecast topped estimates by as much as $1 billion. Macy’s Inc. and Nordstrom Inc. gained on a government report that showed retail sales fell less than economists forecast last month.
The Dow jumped 144.8 points, or 1.5 percent, to 10,015.86 at 4:08 p.m. in New York. The Standard & Poor’s 500 Index increased 1.8 percent to a one-year high of 1,092.02, with financial and technology shares leading gains. The MSCI World Index of 23 developed countries added 1.8 percent.
“Intel and JPMorgan are two major bellwethers, so if the most significant semiconductor company and the most significant bank are blowing out their numbers and guiding higher, that has a positive implication for the entire economy,” said Philip Orlando, who helps oversee $400 billion as chief equity market strategist at Federated Investors Inc. in New York.
The Dow’s rally above 10,000 was led by banks and erases about half the damage done since the gauge soared to a record two years ago. More gains may depend on meeting profit estimates that call for per-share earnings among the 30 companies in the average to rise 22 percent next year and 18 percent in 2011, according to data compiled by Bloomberg.
Benchmark equity indexes extended gains in the final two hours of the session as minutes from the Federal Reserve’s September meeting showed central bankers raised economic projections based on improved housing markets, stabilizing consumer spending and a recovery in growth outside the U.S.
“We’ve really moved in nine months from the threat of another Great Depression to a really powerful recovery,” said Burt White, chief investment officer at LPL Financial in Boston, which oversees $234 billion. “We’ve done that all in just a few months and that’s pretty astounding. That’s what happens when companies are lean and focused.”
Now, how long we can keep this up is another matter entirely…..
Even still, it sure is pretty to see. Green is my favorite color.
By the way, I wonder if Old Art kept that hat. It’s from the first time the Dow cracked 10K in the spring of 1999. It’s been a long strange trip since then.
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