NEW YORK — When the Dow Jones industrial average first passed 10,000 in 1999, traders tossed commemorative caps and uncorked champagne. This time around, the feeling was more like relief.
The best-known barometer of the stock market entered five-figure territory again Wednesday, the most visible sign yet that investors believe the economy is clawing its way back from the worst downturn since the Depression.
The milestone caps a stunning 53 percent comeback for the Dow since early March, when stocks were at their lowest in more than a decade.
“It’s almost like an announcement that the bear market is over,” said Arthur Hogan, chief market analyst at Jefferies & Co. in Boston. “That is an eye-opener — ‘Hey, you know what, things must be getting better because the Dow is over 10,000.’ “
Cheers went up briefly when the Dow eclipsed the milestone in the early afternoon, during a day-long rally driven by encouraging earnings reports from Intel and JPMorgan Chase. The average closed at 10,015.86, up 144.80 points.
It was the first time the Dow had touched 10,000 since October 2008.
On Wednesday, the Dow rose 144.80, 1.5 percent, to 10,015.86, its biggest gain since Aug. 21 and highest close since Oct. 3 last year.
Broader indexes climbed to 2009 highs. The Standard & Poor’s 500 rose 18.83, 1.8 percent, to 1,092.02. The index, the basis of many mutual funds, is up 61.4 percent from a 12-year low in March. The Nasdaq composite rose 32.34, 1.5 percent, to 2,172.23. It’s up 71.2 percent since March.
Retail sales outside of autos showed surprising strength in September, a bump of 0.5 percent, but economists worry the rebound in all-important consumer spending will be short-lived as American families contend with rising unemployment and tight credit.
“American consumers look like they are making their way back. They are cautious, but they are no longer panicked,” said Mark Zandi, chief economist at Moody’s . “They are not spending with abandon, but they are spending enough to ensure that the nation’s recovery will continue.”
Retail sales actually fell 1.5 percent last month, the Commerce Department said Wednesday, a plunge that reflected the end of the government’s popular Cash for Clunkers auto subsidy.
JPMorgan Chase
Third-quarter earnings soared as strong investment-banking results outweighed another sizable provision for loan losses.
The $2 billion the bank set aside to cover current and future losses from consumer loans reflects the bank’s tradition of protecting its balance sheet even as many bankers see a slowdown in the rate that delinquencies are rising.
JPMorgan Chase, with $2 trillion of assets, posted a profit of $3.6 billion, or 82 cents a share, up from $527 million, or 9 cents a share, a year earlier.
Abbott Laboratories
The drugmaker said it beat its own expectations for the third quarter as sales of its Humira continued to climb, along with sales of medical products and nutritional formula for children.
For the quarter, Abbott’s profit rose 16 percent, to $1.43 billion, or 95 cents per share, from $1.24 billion, or 79 cents per share. Excluding one-time costs, Abbott earned 92 cents per share, 2 cents above Wall Street estimates. Revenue grew 4 percent, to $7.76 billion from $7.5 billion.
