Dow tops 10,000 on earnings optimism

Dow tops 10,000 on earnings optimism

Postby Henry » Wed Jul 07, 2010 4:50 pm

State Street leads a strong financial sector as the blue-chip index jumps 275 points.

The Dow Jones Industrial Average ($INDU) jumped back above 10,000 as encouraging earnings forecasts from financial companies boosted confidence on Wall Street.
The Dow climbed 275 points, or 2.8%, to 10,018, closing above 10,000 for the first time since June 28. The S&P 500 ($INX) rose 32 points, or 3.1%, to 1,060, and the Nasdaq ($COMPX) gained 66 points, or 3.1%, to 2,159.

Shares of State Street (STT), one of the New York Stock Exchange's top performers, rose 9.9% to $36.63 after it issued a fiscal-second-quarter profit outlook that topped Wall Street's estimates. The financial sector also climbed, with the Financial Select Sector SPDR (XLF) exchange-traded fund up 4.3%. Shares of Bank of America (BAC), JPMorgan Chase (JPM), Morgan Stanley (MS) and Wells Fargo (WFC) each rose more than 4%.

Conglomerates and tech shares also showed strong gains. All 30 members of the Dow gained, with Cisco (CSCO), JPMorgan, American Express (AXP) and General Electric (GE) among the top performers.

China's State Administration of Foreign Exchange sought to calm concerns about the ways the country might use its vast holdings of U.S. government debt. The central bank arm said its investment decisions aren't politically motivated, but are made to maximize returns, according to a Reuters report.Hong Kong's Hang Seng fell 1.1% while Japan's Nikkei slipped 0.6%. The FTSE in London gained 1%, and the DAX in Frankfurt was also up by 0.8%. There were no macroeconomic reports scheduled for Wednesday. The American Petroleum Institute said crude oil supplies fell by 7.3 million barrels to 351.8 million during the week ended July 2. Analysts polled by Platts had expected them to increase by 3.5 million barrels. The government's supply report is scheduled for 10:30 a.m. ET Thursday.

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