Dow's Triple-Digit Gain Makes Blue Chips Even in 2010
The blue-chip Dow Jones Industrial Average ($INDU) rose 102 points, or 1%, to close at 10,425; while the broader S&P 500 ($INX) gained 9, or 0.8%, to 1,103. The more volatile, tech-heavy Nasdaq Composite ($COMPX) added 24 points, or 1.1%, to finish at 2,269.
"Earnings momentum, a string of economic data showing at least some improvement, along with persistent M&A activity globally are providing support for the case for economic growth to continue," John Stoltzfus, market strategist with Ticonderoga Securities, told clients in a note.
News that most European banks appear adequately capitalized to weather further credit strains gave the market a late-day lift, allowing it to finish the week solid gains. Strong second-quarter earnings and outlooks from macroeconomic bellwethers Caterpillar (CAT), 3M (MMM) and UPS (UPS) this week helped the Dow gain 3.3% since last Friday's close. The S&P 500 added 3.6%, while the Nasdaq tacked on 4.2%.
The Dow and Nasdaq are now at breakeven for 2010, while the S&P 500 is off 1%. For more on the markets from the floor of the New York Stock Exchange (NYX), see the video below: