Stocks surge on strong earns from Intel, JPMorgan

The Dow Jones industrial average was about 30 points away from the 10,000 mark in morning trading Wednesday, a level not seen in a year. Major stock indexes all rose about 1 percent.

JPMorgan Chase, the first major bank to report third-quarter earnings, stoked the market's optimism as it handily beat Wall Street's expectations, reporting a profit of US$3.59 billion for the July-September period. However the bank also said loan losses are still high and are likely to remain so for some time.

Intel also beat analysts' estimates, reporting a smaller-than-expected decline in profit and sales after the market closed Tuesday. The leading chip maker said it expects sales in the final period of the year to top analyst projections, raising hopes that the computer market was improving.

A smaller-than-expected decline in retail sales for September underpinned the market's early gains.

The Commerce Department said retail sales declined 1.5 percent last month as car sales tumbled following the end of the government's Cash for Clunkers program. While that was the largest monthly decline this year, it was not nearly as big as the 2.1 percent drop analysts had expected. Excluding autos, retail sales rose 0.5 percent, better than the 0.2 percent increase analysts forecast.

The dollar slumped to a fresh 14-month low against other major currencies as investors' appetite for risk increased, sending gold to another record high of US$1,072 an ounce. Oil prices rose above US$75 a barrel for the first time in a year.

Treasury prices fell as investors abandoned safe-haven assets for stocks and commodities.

About three stocks rose for every one that fell on the New York Stock Exchange, where 286 stocks hit new 52-week highs and only two hit new lows. Volume on the NYSE came to 326.9 million shares, compared with 292.9 million at the same time on Tuesday.

The market's big gains followed modest losses on Tuesday, sparked by a disappointing decline in sales at Johnson & Johnson that fanned fears that consumers and businesses are still curbing their spending. Adding to the day's woes was a downbeat report from an influential banking analyst suggesting bank stocks are overvalued. The reports from Intel and JPMorgan eased some of those concerns.

JPMorgan shares soared US$1.55, or 3.4 percent, to US$47.21, its highest level in a year. Intel shares gained 61 cents, or 3 percent, to US$21.10.

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