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US STOCKS-Dow hits 10,000 mark on earnings optimism

Published 10/14/2009, 01:56 PM
Updated 10/14/2009, 02:00 PM
INTC
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* Dow breaks 10,000-mark for 1st time in year

* JPMorgan, Intel results boost investor confidence

* Dow up 1.2 pct, S&P 500 up 1.3 pct, Nasdaq up 1.2 pct (Updates to midafternoon, changes byline)

By Leah Schnurr

NEW YORK, Oct 14 (Reuters) - The Dow Jones industrials broke through the 10,000 level on Wednesday for the first time in a year on better-than-expected company results and U.S. retail sales data.

The Dow briefly breached the key psychological level before easing off slightly, while all major indexes were up more than 1 percent. The index's ascent back up through 10,000 provides a another boost for sentiment that could encourage more investors into the market, analysts said.

"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 in Boston.

Strong results from JPMorgan Chase & Co and Intel Corp also bolstered analysts' optimism over the earnings season that is picking up pace.

JPMorgan Chase & Co said profit rose sharply, lifting hopes other major Wall Street banks would report strong results this week. Its stock jumped 3 percent to $47.01, while the S&P financial index gained 2.6 percent.

Chip maker Intel Corp gained 2.3 percent to $20.95 a day after reporting quarterly outlook and results that soared past expectations.

Elsewhere, a government report showed sales at U.S. retailers fell by a less-than-expected 1.5 percent in September. Economists in a Reuters poll had forecast a 2.1 percent drop. The S&P retail index rose 1.4 percent.

The Dow Jones industrial average rose 115.55 points, or 1.17 percent, to 9,986.61. The Standard & Poor's 500 Index gained 14.33 points, or 1.34 percent, to 1,087.52. The Nasdaq Composite Index put on 25.12 points, or 1.17 percent, to 2,165.01.

The Dow was last at 10,000 in October of last year when it dropped through that barrier in a selloff amid heightened fears about the depth of the financial crisis. The index remains down about 29.4 percent from its October 2007 record close of 14,164.53. (Additional reporting by John Parry; Editing by Kenneth Barry)

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