The best-known barometer of the stock market entered five-figure territory again yesterday. The Dow Jones Industrial Average (DJIA) has toppped 10,000 mark for the first time in a year. The DJIA closed up 144.8 at 10,015.86, the highest since October 2008.
When the Dow Jones industrial average first passed 10,000, traders tossed commemorative caps and uncorked champagne. This time around, the feeling was more like relief.
Blue-chip average ends at key milestone for the first time since Oct. 3, 2008 following better-than-expected results from JPMorgan and Intel, CNNMoney.com.
Dow Jones breaks through 10,000. Image source: Google Finance
The advance was broad-based, with 25 of 30 Dow stocks rising. JPMorgan Chase (JPM, Fortune 500), Caterpillar (CAT, Fortune 500), Chevron (CVX, Fortune 500), Hewlett-Packard (HPQ, Fortune 500), IBM (IBM, Fortune 500), 3M (MMM, Fortune 500), United Technologies (UTX, Fortune 500) and Exxon Mobil (XOM, Fortune 500) were the biggest contributors to the Dow’s gains.
Earnings reports from chip maker Intel Corp. and banker JPMorgan Chase & Co. gave the Dow its final push past 10,000.
JPMorgan, the first major bank to report third-quarter earnings, stoked the market´s optimism as it easily beat Wall Street´s expectations, reporting a profit of $3.59 billion for the July-September period. The stock, a Dow component, rose $1.50, or 3.3 percent, to $47.16.
Financial stocks have posted the biggest gains since the rally began, but they were also among the most decimated. JPMorgan is up 197 percent and Bank of America Corp. is up 492 percent.
Intel also beat analysts´ estimates, reporting a smaller-than-expected drop in profits and sales after the market closed Tuesday. Intel rose 34 cents, or 1.7 percent, to $20.83.
Analysts said the latest rise in the Dow could encourage more investors into the market.”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 from Mayflower Advisors in Boston, reported by bbc.co.uk.
While 10,000 is significant on a psychological level, if the market can hold Wednesday´s milestone, investors should grow even more confident.