The Dow 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, 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.
The Dow Jones industrial average <.DJI> rose to 10,002 before trimming gains to 116.23 points, or 1.18 percent, at 9,987.29. The Standard & Poor's 500 Index <.SPX> gained 14.86 points, or 1.38 percent, to 1,088.05. The Nasdaq Composite Index <.IXIC> added 24.69 points, or 1.15 percent, to 2,164.58.
Strong results from JPMorgan Chase & Co
JPMorgan Chase & Co
Chip maker Intel Corp
A government report showed U.S. retail sales excluding auto purchases rose for a second month. The sign of life from consumers offered cautious optimism that spending could help support the economy as it struggles out of recession.
The S&P retail index <.RLX> rose 1.5 percent.
The Dow was last at 10,000 in October 2008 when it dropped through that barrier in a selloff on heightened fears about the depth of the financial crisis. The index is down about 29.4 percent from its October 2007 record close of 14,164.53.
Nonetheless, analysts cautioned that the economy remains fragile even as the milestone is greeted with relief at how swiftly the market has bounced back from March's 12-year lows.
People are more optimistic, but people shouldn't get too excited. There are still a lot of lingering concerns, like high unemployment and the housing market. It's important to take a long-term view, said Joseph Kapp, financial adviser at Lincoln Financial Advisors in Bethesda, Maryland.
Abbott Laboratories Inc
(Additional reporting by John Parry; Editing by Kenneth Barry)